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Royal Mail Loses £200m

By Dan Wilson May 8, 2008 - 8:10 pm

Days after a report revealed that deregulation of postal services had not provided significant benefits to consumers, Royal Mail has revealed annual losses of £200m. For the first time, the universal system for delivering letters and parcels (which allows senders to enjoy the same rates regardless of where they are in the country) was not profitable.

£800m was pumped into the Royal Mail’s pension pot but despite cost-savings from staff redundancies and 600 Post Office branch closures, the poor results have prompted Royal Mail chief executive, Adam Crozier, to call for greater freedom and deregulation. He said that Royal Mail now competes not just with other mail companies but also online companies. “We probably lost more direct marketing business to Google than to TNT” he said.

On the brightside for eBay buyers and sellers, Crozier reiterated the Royal Mail’s commitment to the universal service calling it “part of the fabric of our society and… vitally important to social cohesion and to the UK economy.”

  • fedupwithebay
    13 years ago

    Hmmm, wonder when the next price rise will be. 😈

  • northumbrian
    13 years ago

    I would happily pay a few pence an item more for a better service.
    time saved dealing with “I have not yet received my item ” could more than cover theatextra cost,

    though to be honest most of the time its not the mail at fault.
    the dollops cant really expect to receive their signed for item, if they are on holiday or sitting in the park

  • 13 years ago

    😆 North

    Dollops on holiday or sitting in the park. I have plenty of those.

    Went through our returns the other day. About 50 items had the “not called for” sticker. On checking we had sent replacements for most as the buyer had claimed non delivery.

    I know quite a few RM workers and all of them find it “hard to believe” that a postman would not leave a card if they could not post the item through the letterbox as there is no reason not too.

    It’s either lazy buyers that can’t be bothered to collect or the card gets dumped with the junk mail.

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