Jan/Feb 2004

Businesses mailing out at least 4,000 letters a day now have an alternative to the standard Royal Mail service. UK Mail, a subsidiary of home delivery specialist Business Post, made history in February when it launched a public/private mail service that is said to be the first of its kind in Europe.

Under the terms of the new service, UK Mail will collect mail from customers (it must be pre-sorted) and take it to one of Royal Mail's 73 sorting centres. There the consignments will enter the existing Royal Mail network, and will be delivered to recipients by postmen in the normal way.

The price for the two-day service is around 13p to 14p for up to 60g, depending on their size and how they have been sorted. Rates for heavier items are negotiable. These prices are significantly lower than those for standard second-class postage, although that takes no account of existing discounts already enjoyed by bulk users.

One of the key features of the arrangement is that UK Mail has given assurances that destinations will cover most parts of the country - which should reassure those concerned that the development will undermine the cost base on which Royal Mail currently meets the requirements of universal service provision.

Remarkably, UK Mail was granted a licence for the operation more than two years ago in November 2001, but has been unable to agree a contract with Royal Mail until now. However, both parties now seem happy with the deal they have struck.

A guaranteed 95 per cent delivery rate within two days has been given by Royal Mail, and compensation is payable where this timescale is not met.