Ofcom Launches Probe as Royal Mail Misses 2025/26 Delivery Targets
Ofcom Investigates Royal Mail Over Missed Delivery Targets
Background: Royal Mail's Performance and Ofcom's Response
June 1 (Reuters) - Britain's media and telecoms regulator Ofcom on Monday opened an investigation into Royal Mail after it failed to meet delivery targets for fiscal 2025/26, as the post and parcel group embarks on new delivery patterns and investment to improve services.
Royal Mail's Investment and Improvement Plans
Royal Mail has pledged £500 million ($673 million) in investment over the next five years to reduce delivery time and costs after the regulator set minimum acceptable delivery deadlines and launched a pricing review into its business last year.
Delivery Data and Target Shortfalls
Delivery data published last Friday showed that for the year through March, only 75.7% of Royal Mail's First Class mail was delivered the next working day, below its then target of 93%, Ofcom said, adding that Second Class deliveries too fell short.
Regulatory Actions and Royal Mail's Response
Ofcom, which has previously fined Royal Mail more than £37 million, flagged delays in implementing reforms and called current service levels "unacceptable".
"While Royal Mail is now making progress, it has taken almost a year to begin the process of implementing the delivery reforms," the regulator said.
Royal Mail's Commitment to Improvement
Royal Mail will engage fully with Ofcom throughout the investigation, a spokesperson said in an emailed statement to Reuters.
"Improving quality of service is a top priority and we are delivering a major programme of change through the roll out of our new delivery model which underpins our Improvement Plan."
Additional Information
($1 = 0.7431 pounds)
(Reporting by Simone Lobo in Bengaluru; Editing by Shailesh Kuber and Devika Syamnath)
