Hays wins mail services battle
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r logistics group Hays Is to end the Post Office's traditional monopoly of delivering low-cost mall. Two other firms are set to pose a further competitive threat after applying for a similar licence.
Hays' licence covers three specialist areas, which will be reviewed after a year by postal regulator Postcomm.
But Consignia, the governmentowned company which runs the Post Office, says the decision might weaken Its ability to provide a universal postal service. Stuart Sweetman, Consignia's managing director for strategy and business development, says: "Postcomm Is now prepared to look favourably on applications for postal licences from any company and to offer a mail service at less than the basic 27p first-class stamp."
He claims that Hays is "cream-skimming" the market, and says there is nothing innovative about one of Hays' three new services, which involves extending Hays' overnight Mailine service to its existing customers. The other two services are a pre08:00hrs business-to-business delivery service for customers in London, Edinburgh and Manchester, and the extension of its DX document exchange service.
Hays says: We are confident that thls licence will enable us to begin the process of revitalising and expanding the mail market, and poses no risk to the universal service provided by Consignia."
Postcomm has received two similar licence applications. UK Mail, a subsidiary of Business Post Group, wants to provide mail deliveries to business customers in Bristol, Edinburgh, Leads, Leicester, Liverpool, London, Manchester and Thames Valley. Deya, which delivers BT telephone directories, wants to service local authorities and utilities in the event of strike action by Consignia employees.