Sun, 13 Apr 2025

Sun, 13 Apr 2025 The curious case of why a billionaire wants to buy Royal Mail

From the end of April, the 500-year-old Royal Mail will be controlled by Czech billionaire Daniel Kretinsky who co-owns a football club - but why does he want it?
Background: Royal Mail is considered vital national infrastructure in the UK, and its takeover required review under national security laws. Kretinsky's plans: Kretinsky has stated that he believes future growth lies in out-of-home (OOH) delivery, including parcel lockers and postboxes. He wants to increase the number of OOH lockers from 1,500 to at least 20,000 over time. Regulatory changes: The UK government is reviewing the Universal Service Obligation (USO), which requires Royal Mail to provide a six-day-a-week delivery service to all parts of the country. If the USO is relaxed or modified, it could allow Royal Mail to reduce its costs and increase efficiency. Impact on jobs: Kretinsky has agreed not to make any compulsory redundancies for two years, but the CWU union is concerned about the long-term impact on employment levels. Investment in technology: Kretinsky plans to invest in new technologies, including parcel lockers and postboxes that can take small parcels. He believes this will improve efficiency and reduce costs. Competition from Amazon: Royal Mail faces significant competition from Amazon's OOH delivery service, which already has 5,000 lockers across the UK. InPost also has 7,500 lockers in the UK. Impact on customers: Customers may notice changes in the frequency of second-class deliveries and the introduction of new OOH lockers. The price of first-class mail may increase due to deregulation by Ofcom. Kretinsky's background: Kretinsky is a Czech billionaire with alleged links to Russia, but these have been reviewed and dismissed by the UK government. He has agreed to protect Royal Mail's pension surplus and respect agreements with the CWU union. Overall, the article suggests that Kretinsky's takeover of Royal Mail will bring significant changes to the company, including investments in new technologies and potential regulatory changes. However, it also raises concerns about job security and competition from Amazon.
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