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Ofcom investigates Royal Mail’s failure to deliver mail on time | business news

Ofcom is investigating Royal Mail’s failure to meet delivery targets in 2021-22.

The regulator said: “Ofcom takes compliance with quality objectives very seriously.

“Our investigation on behalf of Post users will gather evidence to understand the reasons for this significant drop in performance and determine whether Royal Mail has breached its requirements.”

Royal Mail failed to meet a number of its targets in 2021-22.

The operator is said to deliver 93% of its first-class mail within one working day of collection, but only managed 81.8%.

It aims to deliver 98.5% of second-class mail within three working days of collection, but managed 95.4%

His goal is for 99.9% of delivery routes to be completed each day that delivery is required, but only 94.09% was achieved.

And 91.5% of first class prepaid and prepaid postal products are expected to be delivered within one working day to 118 UK postcodes – but Royal Mail has not met the target in any of these areas.

Royal Mail ‘disappointed’ with performance

According to Ofcom, performance against targets is measured as average performance levels on an annual basis, excluding the Christmas period.

A Royal Mail spokesman said: “We are disappointed with our service quality in 2021-22 and apologize to all customers who have been affected by service issues.

“As we return to more normal ways of working and implement our transformation program, we are confident that we are doing the right things to improve service quality going forward.”

The spokesman added that the firm would be fully involved in Ofcom’s investigation.

Stocks fall in the stock market

Royal Mail shares fell more than 5% in late afternoon trading.

Early May, Royal Mail signaled that prices would have to be increased as it targeted £350m in cost savings over the financial year – versus £290m previously projected.

It was later confirmed that the plan would include no further job cuts beyond the 700 managerial positions eliminated earlier this year.

Royal Mail already has increased the cost of mailing letters by an average of around 7% and the package prices by an average of around 4%.

The increases brought the cost of a first class stamp to 95p and a second class stamp to 68p.

Royal Mail has benefited from a parcel boom during the COVID-19 pandemic but has said that meeting financial projections this year will depend on its main union agreeing to a wage deal the latter has rejected.

Ofcom investigates Royal Mail’s failure to deliver mail on time | business news

Source link Ofcom investigates Royal Mail’s failure to deliver mail on time | business news

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