Royal Mail rivals fail to dent lead

Deregulation of the postal industry has not yet severely damaged Royal Mail’s position as the main provider of post to businesses, according to Postcomm’s annual Competitive Market Review.

The watchdog’s report shows that Royal Mail still serves 99% of businesses – the same as in 2005. The postal services market was opened to full competition on 1 January.

Royal Mail’s rivals, led by TNT Post UK, DX Network Services and DHL Global Mail, appear to be expanding their customer base, albeit from a very low starting point. These competitors are used by 6.7% of businesses for at least some of their direct mail – four times more than in 2005.

‘Although Royal Mail remains by far the biggest operator, competition has encouraged it to raise its game,’ said Postcomm chief executive Sarah Chambers.