UK Mail plans to take business-to-consumer post lead

by Daniel Farey-Jones,, Brand Republic 19-Nov-04, 07:00

LONDON - UK Mail, the business-to-consumer division of Business Post, is planning to expand its services in a drive to take 3% of the £5.6bn UK business-to-consumer market within three years.

Announcing its financial results this week, Business Post revealed that UK Mail was expected to become profitable as early as March next year.

UK Mail offers a two-day delivery service by collecting sorted bulk mailings from businesses, then sorting and delivering them via its network to local Royal Mail delivery offices where they are again sorted for delivery by Royal Mail postmen.

The current minimum amount for mailing is 4,000 items. A spokesperson said UK Mail was looking at ditching this restriction and also offering a service for unsorted mail.

In February, it became the first company to agree a deal with Royal Mail to use its local delivery network. It has delivered more than 23m items since it began its service in May.

It is reported to have around 16 customers and has indicated that these are from the telecoms, utilities, government and retail sectors. A spokesperson said that two of these are sending out direct mail items such as catalogues.

Business Post chief executive Paul Carvell expects UK Mail's turnover to grow from a current £12m a year to £150m, and for it to take 3% of the £5.6bn market, by the end of its third year.

Aside from Royal Mail itself, UK Mail's competitors include Deutsche Post and TPG.

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