An independent study indicates that small business and the public at large have felt absolutely no benefit from the freeing up of the Royal Mail’s monopoly two years ago.
Big business is the big winner here, tying up lucrative mass mailing contracts with
companies who will print, batch and pre-sort prior to handing-off to Royal Mail to deliver.
More worryingly too are predictions that the Royal Mail’s own viability is under threat due to ‘cherry picking’ of more profitable post. It is clear that something can only be done cheaper when there is greater margin to be cut - but this ignores the cross-subsidy effect.
The big winners claim they have guaranteed quality and consistency of distribution through the involvement of value-add third parties.
This ‘win’ itself could jeopardise the Royal Mail’s ability to make daily deliveries to every household in the UK; who benefits from that?
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