ViaPost to face TNT in mail battle

[TrueBlueTerrier]

http://www.crainsmanchesterbusiness.co. ... ail-battle" onclick="window.open(this.href);return false;

ViaPost Ltd, the hybrid mail service which has attracted a £250,000 investment from Manchester-based IT company ANS Group, faces a major competitor in the shape of distribution giant TNT.

ViaPost's service enables customers to send physical post from any computer. It is sent by print over internet protocol to a centre close to its destination where it is printed, put in an envelope and posted.

The London-based company, founded by serial entrepreneur Ben Way, first announced plans to launch its service in September 2007. However, it did not get up and running until the following August while Dutch-owned TNT began its hybrid mail service in November 2007.

Greater Manchester Chamber of Commerce is marketing TNT's service to its members. As with ViaPost, the main selling points are that users do not have to spend money on stationery, franking machines or stamps. Carbon emissions are lower because letters travel shorter distances.

ANS founder and chairman Scott Fletcher said ViaPost was now changing its focus to concentrate on business customers. He would not disclose ViaPost's sales figures but insisted they were growing rapidly. Fletcher said: “What they have not done is focus on business. That is where you will get the volumes. They have thousands of individual users but they will send 10 letters a week. We are looking for people who do 2,000--plus letters a month.”

Fletcher said the sales force was “hitting the phones” to win new business. Currently two centres are live, including a large hub in Croydon next to a Royal Mail depot, with a further four ready to go as volumes increase. Fletcher said delivery centres could be rolled out cheaply by signing service agreements with secure printers. Utility bills or traffic tickets are obvious target markets.

ViaPost currently offers a two to three-day service, although an international service and next day delivery service should launch in the coming months. A single page letter costs 27p plus VAT, with an additional 4p plus VAT for each extra page.

ANS, whose shares are quoted on PLUS Markets, has received loan notes convertible into ViaPost shares in exchange for its £250,000 cash investment. Subject to conditions, it may put in more money and could end up with a controlling stake in ViaPost.

The deal did nothing for the ANS share price, whose only recent movement has been a 17p jump to 135p which followed a £216,000 share buyback on July 8. This increased directors' holdings to 53.59 per cent.

[POSTMAN]

I know fozz said a while ago that RM thought the numbers sent wouldn't be viable to start one of these things up.
But if we did do one we could surely corner the market!

[janitor]

We did this years ago, it was then deemed unprofitable, probably due to the fact that RM ever publicised it, and after a few months was scrapped.