Ofcom updates Royal Mail delivery targets, starts pricing review

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https://www.easterneye.biz/ofcom-royal- ... ts-review/

Royal Mail, which has faced fines of around $20 million over the past two years for not meeting delivery targets, is currently trying to modernise operations and focus more on parcel deliveries.

MEDIA regulator Ofcom has set new minimum delivery standards for Royal Mail and revised existing targets in an effort to reduce delays. It also announced a review into pricing and affordability, amid concerns over rising stamp prices.

Royal Mail, which has faced fines of around $20 million over the past two years for not meeting delivery targets, is currently trying to modernise operations and focus more on parcel deliveries.

“Urgent reform is needed for the universal service to survive,” Ofcom said in a statement. The regulator said the revised delivery goals could help Royal Mail save up to £425 million ($578.3 million).

Under the new rules, Royal Mail must ensure that 99 per cent of mail is delivered no more than two days late. Ofcom has also adjusted the targets for next-day and three-day deliveries. The target for First Class mail will now be 90 per cent delivered the next day, down from 93 per cent. For Second Class mail, the target has been lowered from 98.5 per cent to 95 per cent within three days.