Ofcom challenges Royal Mail’s performance


Click to follow
The Independent Online

Royal Mail has slumped to the foot of the FTSE 100 as regulators shot down its claims that the six-day-a-week universal delivery service is under threat from fast-growing competition.

Even though it was part privatised last year, the five-century-old postal service is still required to deliver to all 29 million UK addresses from Monday to Saturday at a uniform price.

Whistl, formerly known as TNT Post, has emerged as a serious rival in several big cities, including London. But it does not have to deliver letters to every address in an area or for a minimum number of days per week. Royal Mail wants Whistl and other nascent competitors to face similar rules so that they don’t just “cherry-pick” the best routes.

But the regulator Ofcom has dismissed Royal Mail’s claims and questioned whether Royal Mail had achieved a “reasonable rate of improvement” in making efficiency savings. The shares fell 3 per cent to 405.5p.