Royal Mail strikes packet deal with UK Mail

Royal Mail has joined forces with UK Mail in a bid to preserve its packet business. The company has granted a license to UK Mail to deliver packets up to 5kg in weight from 6 April, according to The Times.

As a knock-on from last year’s national strikes, it has been reported the national operator has lost up to 40% of the market to companies such as Home Delivery Network.

UK Mail could sort in excess of 1,000 packages a night for customers before Royal Mail postal workers make the “final mile” delivery.

Speaking to The Times, Guy Buswell, chief executive of UK Mail, said: “It is good business for us and good business for Royal Mail getting post back into its network. It represents the next logical step for UK Mail, given the success our mail business has enjoyed since its start-up at the liberalisation of the postal markets six years ago.”

The deal comes days after Royal Mail thrashed out a deal with the Communication Workers Union, ending the long-running dispute. Terms of the deal include a 6.9% pay rise for postal workers.

As e-commerce continues to grow, the market for packets up to 5kg is reportedly worth up to £1.5bn a year.