Postal service is failing businesses

Date published: 21/05/2008

Most Greater Manchester businesses believe the postal service has got worse over the last five years, according to a recent survey.

The British Chambers of Commerce survey revealed that 67% of businesses thought the service less reliable than five years ago. However only 14% of them said they had switched to one of Royal Mail’s competitors.

The survey comes after a report by postal watchdog Postcomm warned the universal delivery service was under threat following the end of Royal Mail’s monopoly.

Carol Hopkins, Local Manager for Rochdale at Greater Manchester Chamber, said: "These results are further evidence that Royal Mail's performance no longer meets the expectations of the business community.

“Our members’ report highlights that Royal Mail is perceived as being less reliable than five years ago. What may be surprising is that so many businesses that are clearly not happy with the service have not switched to a competitor. We believe that this could be due to competitors still having to rely on final mile delivery from Royal Mail and therefore switching to a competitor wouldn't bring about earlier delivery times.

“Royal Mail has, in the face of competition, been forced to refocus its resources away from final mile delivery and this has happened at a cost to the customer. We urge the Government to address this by either insisting that the universal service includes reference to early morning delivery or by encouraging alternative delivery firms to enter the marketplace.”

The survey also showed that 88% of businesses were using the internet and email more to carry out transactions that five years ago were done by post.