Tag: UK

Postcomm today published its first review of the UK letters market. The postal market in the UK has consistently grown and lower real prices, increased competition and product choice will encourage it to continue to do so, although not necessarily in its current form. Demand for direct mail services has grown much faster than for other mail, reflecting increased use of the post for advertising and marketing. And outside the area licensed by Postcomm, the fully competitive courier and express delivery market has grown even faster than the traditional letters market, the report says. Since the introduction of limited competition in the licensed area, new operators have entered the market targeting niche services for business customers such as internal mail for financial services customers. So far this has made little impression on Royal Mail’s market share. Private operators accounted for only 0.27% of revenue in the licensed letter market in 2002/03.