Tag: Royal Mail

Consolidation gains momentum in Europe’s Express and Parcels market

Posted by | Apr 7, 2005 | |

The latest findings to emerge from independent market analyst Datamonitor’s (DTM.L) “European Express Benchmarking 2004,” research reveals that the European* 34 billion Euro express market is consolidating. The top 6 players in the industry account for over 50% of these revenues compared to 2001, when they accounted for 44% of the market value and 47% of that in 2002. “The European express industry forms one of the fastest growing segments in the transportation business. Industry consolidation has continued apace as express and parcel delivery companies merge, make acquisitions and form strategic alliances in order to gain scale and enhance their capabilities. 2005 promises new opportunities for these companies with the expansion of the EU. Europe’s fast moving express industry proves difficult to keep track of and the players must be aware of competitors’ operations, changes within the industry and opportunities,” says Emilio Pedrinaci, courier and express analyst at Datamonitor.

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Price change count down begins

Posted by | Apr 5, 2005 | |

On the 29 March the Royal Mail published its Pricing in Proportion
proposals. Just 7 days later, the Regulator, Postcomm, has published its
‘minded to accept’ consultation document. It is clear that Royal Mail and Postcomm are working closely together to ensure Pricing in Proportion is introduced in April 2006. Peter Carr, Chairman of Postwatch, commenting on the Regulator’s announcement said: ” There can be no doubt that the count down has started. In April next year the price for mailing an item will no longer be
determined by just its weight. The price will be determined by weight, size,
and thickness.”

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UK Postcomm ‘minded to’ accept Royal Mail’s revised proposals to restructure its prices

Posted by | Apr 5, 2005 | |

After extensive consultation and following detailed discussions with Royal Mail, Postcomm said today that it is minded to accept recently announced revised proposals from Royal Mail to price letters and packets according to their size, as well as their weight, as from April 2006. However, Postcomm is consulting interested parties before making a final decision, both on the proposals and on the notice period before their introduction. “With full competition in postal services starting next January, it is essential for all parties that Royal Mail’s prices align with its costs,” said Nigel Stapleton, chairman of Postcomm. “Some of its current prices are a carry-over from its days as a national monopoly when cost reflective pricing was less important. To allow this to continue would unbalance a fully competitive market. “I am pleased that Royal Mail has taken on board so many of the points raised following our earlier consultation. After extensive discussions, in which we have tested its revised price proposals, we are now satisfied that they are cost reflective. Any changes must also be revenue neutral.”

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Size, weight, thickness and price – Royal Mail opt for complex approach

Posted by | Mar 30, 2005 | |

After consulting customers about a move to Size Based Pricing (SBP) and for
a period Format Pricing during 2003 and 2004, Royal Mail has added further
confusion by now announcing its Pricing in Proportion (PIP) proposals.

Peter Carr, Chairman of Postwatch commenting on the proposals said: “We
understand and support moves by Royal Mail to price products in accordance
with associated costs. It is important that the dominant monopoly service
provider’s products are cost reflective in the UK’s fledgling competitive
market. Otherwise Royal Mail could unfairly subsidise some of its services
to retain market share.

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New Royal Mail price proposals to incorporate size and format leave 70% of mail unaffected

Posted by | Mar 29, 2005 | |

Royal Mail today published new proposals for pricing mail mainly based on size, which could affect up to 20% of items sent by consumers, and up to 30% of the UK’s total business and consumer mailbag. The changes, which are subject to regulatory approval, would not be introduced until April 2006. They would move postal prices in line with costs by removing some of the hidden cross subsidies funded by high charges to customers sending certain items which are cheaper for postal operators to handle. UK mail prices have historically been set purely on the basis of weight, even though the size and shape of items are what largely determine the costs of collecting, sorting and delivering letters and packets. The new prices would be mainly based on the format of the item being sent.

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