Royal Mail: Competitors can 'cherry-pick' delivery routes

Royal Mail said they were concerned about the impact of "unfettered direct delivery competition", particularly as they have to abide by the "universal service obligation' (the obligation to delivery mail to every UK address, every working day) whilst their competitors do not. A spokesman said:

We are concerned about the impact of unfettered direct delivery competition on Royal Mail. Currently, competitors are allowed to 'cherry-pick' higher density, more profitable routes in urban areas and ignore lower density rural areas where delivery is more costly.

Under the universal service obligation, Royal Mail is required to deliver a service, with published Quarterly Standards of Service. Competitors are not currently required to meet any regulated service standards, and do not need to maintain the high, fixed cost network that Royal Mail needs to fulfil its obligations.

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Postal workers boycott threat

Postal workers could refuse to deliver post sent via anyone other than Royal Mail due to "unfair competition" from competitors who can "cherry-pick" their delivery routes, and are under no obligation to deliver to rural homes, which costs more money.