How billionaire Kretinsky plans to save the UK's Royal Mail

[scoobydo79]

No other countries postal service is owned by a foreign invest company. There are probably very good reasons why.

[clashcityrocker]

There are probably very good reasons why.

What are they?

[postslippete]

Parcels are definitely decreasing in volume. People might not think so, because rounds continue to increase in size, and traffic fluctuates wildly throughout the working week, but overall there can be no denying it. During the pandemic, I would regularly have two pouches full on each loop, now I can easily get everything in one and they are not even close to full. Usually one bundle of mail and a handful of packets. And I deliver to an affluent area.

The pandemic I think we all agree was a one-off. However, according to the full year results which came out on the 24th May 2024. These are Royal Mail's own figures...


- Revenue increased 3.8%, reflecting growth in both parcel and letter revenue.
- Domestic parcel volumes (ex. international) increased by 3%, with domestic parcel revenue up 3.1% year-on-year. We made good progress in winning back customers lost due to industrial action last year. Price increases were partially offset by negative mix.
- Growth was particularly strong in the second half, as we lapped 15 days of industrial action.
- Total letter revenue grew by 4.4% year-on-year, benefitting from price rises, necessary given the inflationary environment and costs of delivering the USO against the backdrop of declining letter volumes, and positive mix effects, partially offset by volume decline.


https://markets.ft.com/data/announce/fu ... GC7426ISA6



Maybe some offices up and down the country need their duties looking at? Last year, we lost several duties in our office and they have still not been adequately replaced. We are still informed to prioritise the Tracked parcels over letters and we often deliver two days worth of letters the next day. We are constantly playing catch up with regard's to completing many of our duties on a daily basis because they aren't covered.

[postslippete]

No other countries postal service is owned by a foreign invest company. There are probably very good reasons why.

What are they?

Other countries governments are more concerned about preventing foreign companies from profiteering as profits are going to shareholders instead of being re-invested to improve the service.

[NWpostie]

No other countries postal service is owned by a foreign invest company. There are probably very good reasons why.

Isn't Holland postal service fully privatised with different companies competing with each other ?

[Trumanity]

Let us be honest, we need more ‘flexibility’ when it comes to delivering parcels first time, especially using common sense when it comes to safe places. That and actually conversing with our customers and asking them to nominate places to leave items.

It would also be an interesting approach to offer subsidised parcel boxes for people, although they are quite cumbersome and not everyone would be happy with having one attached to their houses.

Safe place always.makes me chuckle, if I can access a shed, we'll you get the drift.....

In the DO I work with 50+ duties we rarely get parcels stolen. I'm not really sure 50(?) packets stored in lockers overnight is any safer as once somebody works out how to break into them quickly they'll probably started getting raided regularly with the police just considering it another petty crime, like shoplifting or car thefts.

Not sure how often the existing Amazon/Inpost etc. parcel lockers are broken into?

No idea but with thieves breaking into everything else from cars with loose change on view to a works van for tools you can imagine they'll start sooner or later.

These lockers are all placed in CCTV protected locations. I think it's not going to be an ongoing problem. Amazon refund/replace parcels with no questions asked and still make massive profits. Daniel Kretinsky sees massive profits, reduced workforce and vans/reduced costs, change to employment model, change to pension offering, sell off of valuable DO land no longer required. Letters will be popped in with your deliveroo takeaway once a month.

[Trumanity]

Parcels are definitely decreasing in volume. People might not think so, because rounds continue to increase in size, and traffic fluctuates wildly throughout the working week, but overall there can be no denying it. During the pandemic, I would regularly have two pouches full on each loop, now I can easily get everything in one and they are not even close to full. Usually one bundle of mail and a handful of packets. And I deliver to an affluent area.

Sorry. They are up approximately 3%.

[Barnacle]

Parcels are definitely decreasing in volume. People might not think so, because rounds continue to increase in size, and traffic fluctuates wildly throughout the working week, but overall there can be no denying it. During the pandemic, I would regularly have two pouches full on each loop, now I can easily get everything in one and they are not even close to full. Usually one bundle of mail and a handful of packets. And I deliver to an affluent area.

Sorry. They are up approximately 3%.

The trend over several years shows the parcels are in reverse. The last time they were in 1.2b territory was in 2019, so parcel volumes are back to 2019 levels, that was pre the pandemic blip.

The other pressure on parcels is from Amazon who are eating into RM’s market share every year.
Added: not sure how Amazon is taking share from RM? It must be a change to the options presented to customers when buying stuff.

[LouBarlow]

Parcels are definitely decreasing in volume. People might not think so, because rounds continue to increase in size, and traffic fluctuates wildly throughout the working week, but overall there can be no denying it. During the pandemic, I would regularly have two pouches full on each loop, now I can easily get everything in one and they are not even close to full. Usually one bundle of mail and a handful of packets. And I deliver to an affluent area.

Sorry. They are up approximately 3%.

Up on what? There is no way they are up on pandemic numbers. Maybe 3% pre which is next to nothing and doesn’t offset the massive drop in letter volume.

[postslippete]

There was an FT or Telegragh interview with him and I’ve just watched an MSN interview where he said the same things. He’s as wedded to parcels being the growth area as the current board are, which means that’s where the investment will continue to be focused which is all well and good but where is the growth in parcels going to come from to support this?

Unless RM have secret figures, which I doubt, all numbers point to parcel volumes doing the opposite of growing. They peaked during Covid and have now shrank back.

What is his plan to increase parcel volumes? Didn’t hear him say anything about that.

Parcels as a growth area in Royal Mail is more about improving efficiency. These super hubs are capable of processing thousands of parcels an hour and automation should allow us in theory to keep overall costs down. Any increase in Royal Mail parcel volumes may only come if we gain a bigger market share and as people often opt for the cheapest and the most reliable, that could mean delivering parcels at 8pm on a Sunday evening to enable a next day service and having an gig-employment model like GLS. Many of our competitors are out delivering parcels in the late evenings. These changes are all happening slowly with progressively later start/finish times and the steady but continual recruitment of an alternative workforce.

And even though we have a USP over these couriers on delivering the mail, imho there is no doubt RM will want to continue to keep running service levels down because it is simply not as cost effective as delivering parcels.

[TrueBlueTerrier]

There are probably very good reasons why.

What are they?

The lock bit issue with Royal Mail, and the Russian hackers possibly having connections to the Kremlin and FSK (KGB) would make it easier if the foreign entity had nefarious plans, or their government had plans to attack civilian infrastructure.

A bit tin foil I agree, but it does need to be at least acknowledged as a possibility by the board and government no matter how unlikely.

[Barnacle]

There are probably very good reasons why.

What are they?

The lock bit issue with Royal Mail, and the Russian hackers possibly having connections to the Kremlin and FSK (KGB) would make it easier if the foreign entity had nefarious plans, or their government had plans to attack civilian infrastructure.

A bit tin foil I agree, but it does need to be at least acknowledged as a possibility by the board and government no matter how unlikely.

Thus far the gov. Is ‘seeking assurances’ that the HQ would remain in the UK. It’s surprising that that little detail isn’t in law.

[dazzler123]

There are probably very good reasons why.

What are they?

The lock bit issue with Royal Mail, and the Russian hackers possibly having connections to the Kremlin and FSK (KGB) would make it easier if the foreign entity had nefarious plans, or their government had plans to attack civilian infrastructure.

A bit tin foil I agree, but it does need to be at least acknowledged as a possibility by the board and government no matter how unlikely.

Thus far the gov. Is ‘seeking assurances’ that the HQ would remain in the UK. It’s surprising that that little detail isn’t in law.

for 5 years i think it says?

[Barnacle]

There are probably very good reasons why.

What are they?

The lock bit issue with Royal Mail, and the Russian hackers possibly having connections to the Kremlin and FSK (KGB) would make it easier if the foreign entity had nefarious plans, or their government had plans to attack civilian infrastructure.

A bit tin foil I agree, but it does need to be at least acknowledged as a possibility by the board and government no matter how unlikely.

Thus far the gov. Is ‘seeking assurances’ that the HQ would remain in the UK. It’s surprising that that little detail isn’t in law.

for 5 years i think it says?

Eh? They have to pinky promise to keep the HQ here for 5yrs?

[dazzler123]

There are probably very good reasons why.

What are they?

The lock bit issue with Royal Mail, and the Russian hackers possibly having connections to the Kremlin and FSK (KGB) would make it easier if the foreign entity had nefarious plans, or their government had plans to attack civilian infrastructure.

A bit tin foil I agree, but it does need to be at least acknowledged as a possibility by the board and government no matter how unlikely.

Thus far the gov. Is ‘seeking assurances’ that the HQ would remain in the UK. It’s surprising that that little detail isn’t in law.

for 5 years i think it says?

Eh? They have to pinky promise to keep the HQ here for 5yrs?

sure its the 5 years to keep it UK based and not change the name