Royal Mail privatisation... Would you?

AdrianC

Radio 4's Today is full of the forthcoming privatisation. SWMBO is very unkeen - "it's not right" - but I rather suspect it'll be too good an opportunity to miss, and since a boycott on principle won't make any difference, it seems daft to miss out.

What think you?

Obviously, the prospectus isn't out yet, so the details may make a difference either way. But - assuming the numbers are right - would you avoid it on principle?

IronWolf

Not on principle, I'd avoid it based on the fact they are priced higher than competitors for parcels, and sending letters is a dying industry.

I'm glad we're getting rid of it because its a bad business.

bertpalmer

Yeah, I think I would - as a punt.

Sure, fewer letters are being sent every year, but people always need to send physical objects.

SliAbhaile

bertpalmer wrote: »

Sure, fewer letters are being sent every year, but people always need to send physical objects.

What he said.

With more and more Internet shopping it seems obvious that distribution networks will prosper, especially one that already has first mover advantage and where the costs of entry (building a network) are enormous.

I won't buy from Internet traders who do NOT use RM because my nearest DHL collection point is on the other side of London (bitter experience) but I can walk around the corner to collect from RM. It's a massive unique selling point.


The Royal Mail should be riding the crest of a wave.

patientperson

Royal Mail is probably worth a punt. The wokforce are due to be GIVEN 10% of the shares as an inducement but this is a bit of a moving goalpost till we know what actual % is to be floated. Today we hear 41% from government + the 10% promised to workers so that still leaves 49% in government hands. Let us also not forget that the pension fund deficit of £8 billion has been passed over from Royal Mail to the general taxpayer. That means that the Royal Mail books are in a much healthier position than they were a year ago. Taxpayer landed with £8 billion whilst float is mentioned at £3 billion so it is the taxpayer who is losing big time.

pqrdef

SliAbhaile wrote: »

I won't buy from Internet traders who do NOT use RM because my nearest DHL collection point is on the other side of London (bitter experience) but I can walk around the corner to collect from RM.

Lucky for you, but only a minority of people can have that advantage. And parcels have a knack of being big and heavy.

It's a massive unique selling point.

It's not selling though. Can't remember when I last ordered from anybody still using RM. High-price merchants as well as discounters seem to have given up.

My nearest RM collection point is a lot nearer than anybody else's, but it's still a car trip, and their advantage is negated by not having any parking space. Lug bulky heavy parcel across town to multi-storey and find lift not working, no thanks. Arranged for their convenience, not thought out from the customer's point of view.

Never understood why RM made me go to the sorting office while Parcel Force would leave parcels at the sub post office that used to be across the road. But nearest sub post office is also a car trip now anyway.

But now I'm glad nobody uses RM, because they've started leaving parcels with neighbours. For me their best selling point was not doing that. DPD don't, unless you tell them to.

Anyway, the first thing RM will have to do when privatised is rationalise the delivery network. They'd have done it years ago if it wasn't for the unions, but the unions are finished now, because the management will have the threat of simply selling the whole business to TNT, who will promptly close most of the network down.

Itismehonest

Living in the middle of nowhere I expect the already naff service (it went completely downhill 10 years or more ago) to probably become totally non-existent.

So, no, I wouldn't be interested in propping up the terminally ill service.

custardy

pqrdef wrote: »

Lucky for you, but only a minority of people can have that advantage. And parcels have a knack of being big and heavy.
It's not selling though. Can't remember when I last ordered from anybody still using RM. High-price merchants as well as discounters seem to have given up.

My nearest RM collection point is a lot nearer than anybody else's, but it's still a car trip, and their advantage is negated by not having any parking space. Lug bulky heavy parcel across town to multi-storey and find lift not working, no thanks. Arranged for their convenience, not thought out from the customer's point of view.

Never understood why RM made me go to the sorting office while Parcel Force would leave parcels at the sub post office that used to be across the road. But nearest sub post office is also a car trip now anyway.

But now I'm glad nobody uses RM, because they've started leaving parcels with neighbours. For me their best selling point was not doing that. DPD don't, unless you tell them to.

Anyway, the first thing RM will have to do when privatised is rationalise the delivery network. They'd have done it years ago if it wasn't for the unions, but the unions are finished now, because the management will have the threat of simply selling the whole business to TNT, who will promptly close most of the network down.

because RM(letters) are subject to regulation
using POs gives them an advantage over 'competitors'
So its only is specific areas such as rurals where POs are used in such a manner

[Deleted User]

Think it will be a good idea to buy, they have turned to profit and the government always undervalue business when they privatise them...

pqrdef

custardy wrote: »

because RM(letters) are subject to regulation
using POs gives them an advantage over 'competitors'
So its only is specific areas such as rurals where POs are used in such a manner

This isn't a rural area. And RM owns Parcel Force, and in the regulated letters business there aren't any competitors.

IronWolf

I send plenty of parcels and have never once used Royal Mail. They are always among the most expensive couriers and the pricing is far too complicated.