Royal Mail faces investigation over missed delivery targets
- Ofcom has launched an investigation into Royal Mail for failing to meet delivery targets.
- Royal Mail recently reported a slight improvement in on-time deliveries but still missed key targets.
- Regulatory scrutiny and criticism from consumers highlight the need for substantial improvements in service quality.
In the United Kingdom, Ofcom has initiated an investigation into Royal Mail following significant failures to meet legally mandated delivery targets. Over the past year, nearly a quarter of first-class mail was not delivered on time, while the company also fell short of its target for second-class mail, with only 92.2% being delivered within the required three days. This discrepancy has triggered regulatory scrutiny, particularly given that 93% of first-class mail must be delivered within one working day, excluding busy periods like Christmas. The statistics of the year leading up to March 2025 showed that Royal Mail managed to deliver only 76.3% of first-class mail on time, a slight improvement from 74.5% in the previous year. In addition to regulatory pressures, Royal Mail has already faced substantial financial repercussions, accumulating a £16 million fine over the last two years for non-compliance with service obligations. The company's chief operating officer, Alistair Cochrane, acknowledged that service quality has not yet met expectations and emphasized the ongoing commitment to improvement while advocating for reform of the universal service obligation (USO). This obligation requires Royal Mail to maintain a consistent service, providing deliveries of letters six days a week and parcels five days a week to all addresses in the UK. As part of its modernization efforts, Royal Mail is beginning to see some improvements. However, they admit that further work is necessary to meet both customer expectations and regulatory requirements. In response to the ongoing concerns regarding delivery performance, Ofcom has been examining possible adjustments to the delivery targets for Royal Mail as part of a broader review of the USO. These considerations come amid significant criticism from advocacy groups, including Citizens Advice, which highlighted that while delivery performance remains unsatisfactory, Royal Mail continues to increase stamp prices. The recent approval of the sale of Royal Mail's parent company, International Distribution Services, to Czech billionaire Daniel Kretinsky has added another layer of complexity to the situation. Shareholders supported this £3.6 billion deal, which signifies a major shift in ownership for the historically significant postal service. As stakeholders watch closely, it remains to be seen how these changes will affect Royal Mail's operational standards and service reliability in the future.