TNT Post and Royal Mail: end-to-end competition in postal services
TNT Post are in direct competition with Royal Mail in parts of London, Liverpool and Manchester – they now provide a full ‘end-to-end’ service in these areas, delivering business post directly to the addresses of customers, and are said to be planning to expand. Royal Mail believe that this competition is a threat to the universal postal service they provide. This note explores the issues, possible responses and the position taken by Ofcom, the regulator, so far.
TNT Post are in direct competition with Royal Mail in parts of London, Liverpool and Manchester – they now provide a full ‘end-to-end’ service in these areas, delivering business post directly to the addresses of customers. TNT Post’s end-to-end business has expanded rapidly since they started trials for the service in West London in April 2012 and they are said to be aiming to cover 42% of addresses by 2017.
Royal Mail believe that this competition is a threat to the universal service they provide, suggesting that TNT Post ‘cherry pick’ certain routes and noting that – unlike Royal Mail – TNT Post do not have to pay the costs of providing a service six days a week to all addresses across the UK.
This note explores end-to-end competition in postal services, TNT Post’s expansion, Royal Mail’s concerns, possible responses and the position taken by Ofcom, the regulator, so far.