Milkmen set to cream off post delivery business

Letters could be collected and delivered by milkmen or supermarkets under plans to increase competition in postal services, it was suggested yesterday. The industry’s regulator, Postcomm, published a consultation document arguing there could be clear benefits for postal users if other firms were allowed to compete with the Post Office. Businesses which already have a distribution network, such as newspaper firms, freight operators, milk delivery companies and supermarkets, could be licensed to carry mail, said the report. The document said experience in other countries had shown that competition had not taken away significant business from traditional postal operators. Postcomm is seeking views over the next three months on whether to grant licences to other operators or whether to restrict competition if there was a threat to the universal service currently provided by postal group Consignia. The report said that, in Finland, the threat of competitors had encouraged the main postal service to deliver 95 per cent of first class letters by the next day. ‘Consignia’s operations are geared around daily delivery,’ said the
report. ‘Competitors may decide to offer a different service with less
frequent deliveries.’ Potential new entrants could be existing postal operators such as express or courier firms or non-postal companies. ‘Other possible entrants could be newcomers looking to develop innovative ways of providing postal services,’ said the report.
Copyright: MGN Ltd