UK postal regulator Ofcom has unveiled a revised set of delivery performance standards for Royal Mail (LSE:IDS), a move that could lead to cost reductions of up to £425 million ($578.3 million) for the national postal operator.
Under the updated guidelines, Royal Mail is now required to deliver 99% of mail within two days of the intended timeframe, tightening control on delays while allowing greater operational flexibility.
Delivery benchmarks have also been relaxed: the target for First Class post arriving the next day has been lowered from 93% to 90%, and for Second Class mail, the threshold for three-day delivery has been adjusted from 98.5% to 95%.
The changes, which were officially announced by Ofcom on Thursday, form part of the regulator’s ongoing review of universal postal service obligations and are aimed at balancing consumer expectations with the financial sustainability of the postal network.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Leave a Reply