Saturday, May 05, 2007

Royal Mail benefits from the Web

While email is killing - or has killed - peer to peer letter communication, many web companies seem to be more than making up for the damage.
Amazon has given an enormous boost to the Royal Mail's parcel delivery service but the biggest impact to its letters business has undoubtedly been the on-line DVD rental services.
The Evening Standard's This is London in a piece about film state that "LoveFilm will reportedly soon become the Royal Mail's single biggest client".
Personally, I am a little sceptical of this statement the source of which is not attributed.
Yes, with an estimated 1m discs going to and from LoveFilm (Royal Mail gets paid there and back) each week its pretty good business for Her Majesty's postal service.

No wonder other home delivery services like Deutche Post are eyeing Royal Mail's UK stranglehold.

Royal Mail delivers 84 million items every working day and has a network of 14,376 post offices. Revenue for the year was £9.056 billion, and profits before tax were £312 million.

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