Royal Mail has plunged into a fresh crisis after publicly failing to meet its essential delivery performance targets for the second consecutive year. This setback arrives at a critical juncture, just as the historic postal service is on the cusp of a monumental takeover by Czech billionaire Daniel Kretinsky.
The company's own figures reveal a stark picture: only 74.5% of first-class mail was delivered the next working day within the required timeframe. This performance falls a significant 15.5 percentage points short of the regulatory target of 90% set by communications watchdog Ofcom.
Second-class post fared little better, with a 92.5% delivery rate against a target of 95%, cementing a year of severe operational underperformance.
A Takeover Amidst Turmoil
This delivery disaster unfolds against the backdrop of Kretinsky's EP Group finalising its £3.6 billion acquisition of Royal Mail's parent company, International Distributions Services (IDS). The completion of this deal, which hands ownership of a cherished British institution to a foreign entity, is expected imminently.
An EP Group spokesperson acknowledged the challenges, stating the company is "acutely aware of the criticisms levelled at Royal Mail's service" and is committed to a swift turnaround. However, industry watchers are deeply concerned about the mounting pressure from Ofcom.
Ofcom's Looming Shadow
The consistent failure to hit legally mandated targets places Royal Mail in a precarious position with the regulator. Ofcom has previously shown its teeth, fining the postal giant £5.6 million for similar failings last year. With targets missed once again, the spectre of further hefty financial penalties or stricter enforcement action now hangs over the company.
This regulatory scrutiny will be one of the most urgent issues inherited by Kretinsky's new management team. The company's performance has been blamed on a combination of factors, including the lasting impact of industrial action and ongoing struggles to adapt its network to the modern era of parcel deliveries.
As the iconic red postboxes change hands, the nation watches and waits to see if new ownership can finally deliver the reliable service the British public expects.
