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Business Post may create 1,000 new jobs
Page 9
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Parcel delivery company Business Post expects to create 1,000 jobs within three years as a result of taking over a slice of Royal MaIrs postal service.
Chief executive Paul Carvell says the licence to operate bulk mail services fir business customers will double the company's turnover to more than £300m a year.
But the expansion programme is stalled because the Birmingham-based company and Royal Mail can't agree on the financial terms of the licence, which was awarded more than a year ago. Postal regulator Postcomm is trying to resolve the disagreement but will not publish any proposals until later this month. A Postcomm spokesman says: "The problem with this sort of thing is that neither side likes the numbers you end up with."
The Business Post licence, awarded to its subsidiary UK Mail, involves collecting from business customers in Birmingham, Bristol, Edinburgh, Leeds, Leicester, Liverpool, London. Manchester and the Thames Valley.
Mail will be sorted and transported to the relevant Royal Mail depot, which will than be responsible for the final leg of the delivery process.
Carvell predicts the number of Business Post franchisees will grow from 43 to at least 60. Some of the company's 20 In-house depots may be franchised as well. "I think it is inevitable that, through liberalisation [of the Post attics], we will get more services," he adds.
Business Post currently employs 1,400 people. A further 2,000 people work for its franchisees or are owner-drivers working for the company.
• Postcomm has awarded Hays the first long-term licence to introduce additional mail services for businesses.
The licence, which started on 1Jan, will run for seven years, and will allow Hays DX to deliver business mail to any business address in the UK.