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Royal Mail Privatisation: What now for business?

The government plans for privatisation have received a mixed reception amongst the public. The main feeling towards the flotation on the stock exchange are of resentment and outrage! Some argue that the privatisation of the mailing system can be a great opportunity.

Royal Mail Logo

The Royal Mail, soon to be 500 years, is soon to undergo a the biggest reformation in its history, causing what appears to be real concern for the majority of the population and a smug satisfaction for private investors involved. Consumers around the UK fear a price hike which will affect the public and businesses all over the UK.

Is this a bad thing?

An article from The Money Observer suggest that this actually presents opportunities for “private companies to stake their claim” and that the change “needn’t be a bad thing from the consumers point of view.”

The article by James Greenbury, Chief Executive Officer at Parcel2Go.com stated that perhaps the most common cause of the uproar is that the price rise will be introduce to “satisfy the greed of private investors.” In the consumers eyes prices have been rising outrageously of late. For example, three years ago a second-class stamp cost 32 pence. In 2013 the same stamp is 50 pence, and rising. However, the price for most services has increased with inflation in the past 3 years. However, this is no excuse for the new parcel costs which are set to double in price with the new system.

Greenbury goes on to say “whether or not Royal Mail prices continue to rise remains to be seen. What we do expect is that, in a more equal market, competition for customers will accelerate – leading to increasingly attractive pricing models.”

What now for businesses? 

Whether or not the price hike is as exaggerated as the public expect, many organisation that use Royal Mail services may switch to cheaper alternatives. Perhaps it’s time to start looking at outsourcing your mail to private organisations such as Orbital Mailing services who offer competitive mailing solutions across the UK. 

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