Tag: UK

UK Royal Mail warned on poaching business

Posted by | Jan 21, 2005 | |

Postcomm, the postal regulator, has threatened to fine Royal Mail if it continues to use anti-competitive practices to keep rivals out of the UK postal market. Royal Mail yesterday agreed to rein in its marketing activities staff after Postcomm found discounts offered to magazine and catalogue companies had contravened competition rules. At the end of 2003, AMP, a rival postal company, complained that Royal Mail was trying to poach business customers through the use of special offers. AMP, which specialises in delivering magazines and catalogues, alleged that Royal Mail had offered discounts to companies in these sectors in an effort to drive it out of business. Following a long investigation, Postcomm said that Royal Mail had contravened two conditions in its licence designed to facilitate competition, as any discounts should be offered equally to all customers. Royal Mail said it had not realised at the time the discounts were anti-competitive, and that they were no longer on offer.

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Palletline extends hub

Posted by | Jan 20, 2005 | |

Palletline is to extend its Birmingham central hub by 2,500 sqm. It says the expansion will help it increase volumes towards 20,000 pallets a day. The work is due to begin in February and should be completed by the end of June.

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Depot numbers

Posted by | Jan 19, 2005 | |

Initial City Link told us last week that they had 13 owned depots and 52 franchised giving a total of 65.

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TNT, Murdoch to compete with UK Royal Mail

Posted by | Jan 19, 2005 | |

Rupert Murdoch has linked up with another giant of Australian business, TNT, in its bid to compete with Britain’s state-owned postal service Royal Mail. Transport and delivery company TNT has entered Britain’s letter market with its TNT Premier service which guarantees delivery in 48 hours and handles one million items a week. As its service expands and the market opens up, however, TNT and other private mail providers have complained about Royal Mail’s “dirty tricks” and uncompetitive behaviour. Murdoch’s pay TV network BSkyB is the latest of five major customers to defect from Royal Mail to TNT, including food distributor Booker and mail order firm Express Gifts, the British newspaper The Guardian reported.

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UK Royal Mail’s market share being eroded

Posted by | Jan 19, 2005 | |

Royal Mail’s monopoly of the postal market is starting to be eroded, as rival mail companies poach the group’s biggest business customers. TNT Mail, owned by the Dutch post office, said yesterday it had won contracts to handle mail for several high-profile corporate clients, including Sky. The company said that it was handling nearly 1m items of post every week. Business Post, owned by UK Mail, has been operating in the UK since early last year and boasts clients such as Powergen, while DHL Global Mail, part of Deutsche Post, will launch its own UK business at the end of this month. Andy Barrett, head of marketing at DHL Global Mail UK, said the group had signed contracts with two large business customers. Although private sector competition to Royal Mail is growing rapidly, the state-owned group is expected to retain its market dominance for many years.

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