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Ofcom opens investigation into Royal Mail’s performance

Ofcom opens investigation into Royal Mail’s performance
Ofcom opens investigation into Royal Mail’s performance

The UK’s regulatory body for postal industries, Ofcom, is investigating Royal Mail, following its failure to meet delivery targets. 

Ofcom says in deciding whether the company is in breach of its obligations, the agency will consider if there were any exceptional events beyond Royal Mail’s control that may have explain its missed targets. 

“If it does not provide a satisfactory explanation and we determine that Royal Mail has failed to comply with its obligations, we will consider whether to impose a financial penalty,” says Ofcom. 

Royal Mail’s performance 

According to the regulatory body’s rules, Royal Mail has to meet certain performance targets each financial year, except during Christmas. They must:

  • Deliver 93% of first-class mail within one working day of collection.
  • Deliver 98.5% of second-class mail within three working days of collection.

Ofcoms says Royal Mail has acknowledged it did not meet these targets. 

Watchdog keeping a close eye 

This latest investigation is not Royal Mail’s first brush with trouble. Ofcom previously fined the company £5.6 million ($6M) to meet first and second class delivery targets in the 2022/23 financial year.

On imposing the fine last year, Ofcom’s director of enforcement Ian Strawhorne said: “The company’s let consumers down, and today’s fine should act as a wake-up call – it must take its responsibilities more seriously. We’ll continue to hold Royal Mail to account to make sure it improves service levels.”

Parcel companies not delivering 

The UK’s postal service industry has been plagued by non-performance, with parcel companies just not just keeping up delivering for customers. In November, a Citizen Advice Bureau survey showed these companies which undelivered in 2023. 

On the other side of this, are the parcel companies which are championing the delivery space. In February, Locate2u reported some triumph in the sector, showing DPD UK gaining the upper hand when it comes to customer satisfaction. 

Delivery market in the UK 

Expert Market Research reports that the United Kingdom Courier, Express, and Parcel market is estimated to grow at a compound annual growth rate of 7% in the next eight years – some good growth. 

“Rising demand for fast and convenient delivery options have shifted the focus of courier, express, and parcel service providing companies towards exploring alternative delivery methods and enhancement of last mile logistics, aiding the United Kingdom courier, express, and parcel (CEP) market growth,” read the report. 

NOW READ: Royal Mail Collect+ locations launched across the UK

Phot Credit: Royal Mail (Facebook)

About the author

Sharl is a qualified journalist. He has over 10 years’ experience in the media industry, including positions as an editor of a magazine and Business Editor of a daily newspaper. Sharl also has experience in logistics specifically operations, where he worked with global food aid organisations distributing food into Africa. Sharl enjoys writing business stories and human interest pieces.

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