Ofcom Proposes Major Reform of Royal Mail

Ofcom has unveiled proposals to reform the UK’s Universal Service Obligation (USO), aiming to bring the postal system in line with changing consumer behaviour and ensure the long-term sustainability of Royal Mail’s operations.

With letter volumes falling dramatically and parcel demand continuing to grow, the regulator is seeking to modernise the services Royal Mail is legally required to provide, while maintaining key features that consumers still value — such as affordability and nationwide coverage.

Letter Decline Spurs Review

Over the last decade, letter volumes in the UK have halved — from around 14 billion in 2011/12 to just 7 billion in 2022/23. In contrast, parcel volumes have risen steadily, driven by e-commerce and changing business models. Ofcom’s review responds to this shift, highlighting that the current six-day-a-week letter delivery model is no longer aligned with consumer needs or usage patterns.

Proposed Changes to the USO

Among the most significant proposals is a revision to delivery frequency. Royal Mail would no longer be required to deliver Second Class letters six days per week. Instead, deliveries would be made every other weekday, while First Class mail would continue with a six-day delivery schedule. Parcel services are unaffected by the proposals.

Ofcom also recommends updating performance standards. The new model would set realistic expectations based on how consumers actually use the mail:

  • First Class delivery: target of 90% delivered next-day (down from 93%)
  • Second Class delivery: target of 95% delivered within three days (down from 98.5%)

New reliability targets:

  • 99.5% of First Class mail delivered within three days
  • 99.5% of Second Class mail delivered within five days

These changes reflect a growing preference for reliability and value over speed, according to Ofcom’s research.

Affordability and Accessibility Remain Key

While usage patterns have changed, many people still depend on the postal service — particularly in rural and remote areas. The regulator is committed to preserving elements such as uniform pricing and national coverage to ensure fair access for all.

Consumers indicated that they continue to value the availability of next-day First Class service and the ability to send items across the country at a consistent price.

What Happens Next?

The public consultation on these proposals closed in April 2025. Ofcom is now reviewing responses from stakeholders, including postal users, businesses, and consumer groups. A final decision on the updated USO is expected later this year, with implementation likely to follow shortly after.

For the logistics sector, these reforms mark a significant step in rebalancing letter and parcel operations, aligning the regulatory framework with today’s market demands and delivery expectations.

Read Similar…

WhatsApp, Chatbots Improve Customer Experience in Logistics

InPost Acquire Delivery Company Yodel

European e-commerce logistics provider InPost has announced its acquisition of parcel delivery company Yodel, aiming to accelerate its expansion in the UK market.

InPost stated that the acquisition will unify out-of-home and doorstep delivery solutions under a single brand, enhancing its operational scale, broadening its service offering, and delivering greater convenience for both retailers and customers.

As part of the deal, InPost has acquired 95.5% of the share capital of Judge Logistics Ltd (JLL), the parent company of Yodel Delivery Network. PayPoint will retain a minority stake of 4.5%.

Following the transaction, InPost UK’s market share has grown to around 8%, positioning it as the third-largest agnostic e-commerce logistics carrier in the country. This move builds on InPost’s previous acquisition of Menzies Distribution in October 2024, which granted it full control over its logistics operations in the UK.

Rafał Brzoska, founder and CEO of InPost Group, described the deal as a major milestone in the company’s strategy to transform the UK delivery landscape and strengthen its pan-European presence. He noted that the acquisition accelerates what would have taken five years of organic growth and underlines the company’s long-term commitment to the UK, a market with significant growth potential.

Neil Kuschel, CEO of InPost UK, called the acquisition a transformative step for the company’s UK operations. He highlighted the integration of doorstep deliveries with InPost’s extensive locker network as a key advantage that will allow the company to offer increased reliability, flexibility, and efficiency to customers and e-commerce retailers. “By combining Yodel’s trusted to-door service with our market-leading out-of-home offering, we are creating a carrier that genuinely responds to how people want to send and receive parcels in today’s fast-paced, convenience-focused world,” Kuschel said.

With this acquisition, InPost aims to realize several strategic objectives. It anticipates rapid growth in the UK, delivering over 300 million parcels annually and serving more than 500 e-commerce merchants. The company’s market share has already reached approximately 8%, supported by 10,000 automated parcel machines and over 18,000 out-of-home delivery points.

The acquisition enables InPost to offer a unique and comprehensive service, combining next-day home delivery with a vast out-of-home network under one brand. It also diversifies InPost’s business both geographically and by customer segment, with the UK now contributing around 30% of the Group’s total revenue. From a financial standpoint, the deal is seen as a strategically sound investment, significantly boosting InPost’s presence and long-term growth in the UK market.

Read Similar…

DSV announces changes to its executive management

CIRRO Partners with Loop to Enhance Returns Processes

CIRRO Fulfillment, a leading global e-commerce fulfillment provider, announces the partnership with Loop, the leading returns and reverse logistics platform. This collaboration aims to significantly enhance the returns process for retailers and brands. With the integration of Loop’s automated portal, customers can effortlessly initiate returns, request exchanges, or secure refunds. This streamlined process reduces manual tasks, making returns management faster and more efficient, while enhancing the customer experience. The partnership also helps retailers and brands save time and reduce costs related to reverse logistics, allowing them to focus more on business growth.

Hong Li, Global Head of Sales at CIRRO Fulfillment, said, “We are glad to accomplish this integration between CIRRO Fulfillment and Loop as part of our shared commitment to delivering an exceptional customer experience. This enables CIRRO Fulfillment to seamlessly manage returns through Loop, while Loop users gain access to our extensive global facilities and returns services.”

“We’re beyond excited to be partnering with the team at CIRRO Fulfillment, as our mutual merchants will now be able to combine the power of Loop and CIRRO Fulfillment to ensure a smooth and efficient experience in both their forward and reverse logistics,” said John-David Klausner, SVP of Business Development and Partnerships at Loop.

Together, CIRRO Fulfillment and Loop offer a comprehensive solution that enhances both operational efficiency and customer satisfaction, transforming returns management from a burden into an opportunity for business improvement.

Read Similar…

English Channel Supply Chain Delays threaten Christmas

Packfleet and Who Gives A Crap ship over 9m rolls

All-electric courier Packfleet and Who Gives A Crap have ended crappy deliveries for Londoners, with over nine million toilet rolls delivered across the capital. 

It’s not just customers that are benefitting, it’s the planet too, with the brand saving approximately 54,500kg of carbon emissions thanks to Packfleet’s ultra-efficient, all-electric fleet.

These figures will only continue to increase, with Packfleet on course to ship over 10 million rolls by the end of 2024.

From working with Packfleet alone, Who Gives A Crap is set to reduce the total carbon emitted by its UK-EU region by 0.6%.

To mark the new partnership, the Who Gives A Crap team recently became Packfleet delivery drivers for the day – bringing ‘random acts of crappiness’ directly to customers’ doorsteps.

Londoners were treated to free cupcakes alongside their toilet roll, with furry friends being offered branded dog biscuits.

As a result of the partnership, Who Gives A Crap has seen a 25% drop in customer queries on the whereabouts of their orders, thanks to the introduction of Packfleet’s transparent, user-friendly recipient experience.

Packfleet’s delivery failure rate is 10x less than traditional couriers, resulting in over 98% of Who Gives A Crap customers receiving their bog roll on time – an over 4% improvement on the UK industry average – cutting down on resource-intensive redeliveries.

The two B Corp certified brands teamed up in October 2023, and have been disrupting their respective sectors together ever since.

Tristan Thomas, CEO of Packfleet, said: “We’ve achieved a lot in the short time Packfleet has been working with Who Gives A Crap, with both customers and the environment seeing the upshot. 

“Our close relationship with the Who Gives A Crap team has allowed us to do some amazing work, including letting them experience what it’s like to be a Packfleet driver first hand. 

“Whilst we can’t promise to deliver toilet rolls directly to the bathroom door, we are confident we can maintain the high standard we’ve achieved and continue to put a stop to crappy deliveries.” 

Phillipa Taylor, Head of European Supply Chain at Who Gives A Crap, added: “We chose to work with Packfleet due to their carbon neutral deliveries, tech platform and customer focus.

“Deliver and Delight is one of our core values at Who Gives A Crap. Packfleet have consistently lived up to this, with reliable and excellent service, week in, week out – driving down our customer tickets. 

“The Packfleet team continually comes to the table with proactive ideas and opportunities on how we can further improve our customer experience. 

“Surprising our customers on delivery day was a real highlight for us. We couldn’t have done this without Packfleet’s trust and cooperation. They have been great to work with and have enabled us to get closer to our customer experience. Thank you, Packfleet.”

Read Similar…

UK Parcel Delivery to Lead Europe This Festive Season

UK Parcel Delivery to Lead Europe This Festive Season

A new study released today by FedEx, forecasts that parcel carriers will collectively distribute 1.29 bn shipments across the UK between October and December 2024, 10.9% more than in the same period in 2023.

The independent study was conducted by Effigy Consulting, which analysed its courier, express and parcels (CEP) database with 500,000 data points on more than 300 carriers in 41 countries.

The data shows a significant increase on the UK figures for 2023, up from 1.17bn parcels to 1.29bn in 2024. The UK will be the busiest market for parcels this Peak season, representing 21% of the total deliveries made, equating to 12 parcels per person across the UK and Europe.

Germany and France will be the second and third busiest markets, with Germany accounting for 17% (1.1 bn) and France making up 8.4% (524 mil) of the total parcels delivered across Europe. This growth is being driven by a rise in e-commerce which accounts for nearly 70% of shipments going directly to consumers across the European market.

Alun Cornish, Vice President Network Operations at FedEx commented: Peak season is a critical period for UK businesses, with many relying on transportation and logistics to meet increased demand and deliver for their customers. Online shopping, ecommerce, and a shift towards deferred services will continue through this year’s peak, reflecting changing consumer behaviour and ongoing cost-consciousness in the market.”

FedEx’s networks will scale and adapt to meet the UK’s increased demand, with options for air and road transportation, as well as more predictive technologies to manage potential disruptions and make the ‘golden quarter’ a success.”

Across the whole of Europe, 6.2bn shipments will be made between October and December 2024, 9.0% more than in the same period in 2023. The UK is one of the fastest growing major European countries with a growth of 10.9% on last year, outpaced only by Portugal and Poland and countries such as Turkey, Croatia and Bulgaria.

To illustrate the scale of the Peak, the total European volume (4.878 bn cubic feet) would equate to filling the entire structure of Wembley Stadium thirty-four times over. The total weight of goods transported across Europe at this Peak will be almost 7.5m tonnes, which equates to around 15 kg for every person living in the EU and the UK.

The countries with the highest volume of shipments during this Peak season are the UK (1.3bn) and Germany (1.1bn), followed by France with just over half a billion (524m), with twelve parcels sent for every person in the UK and EU during the three-month period.

Read Similar…

Navigating Black Friday Logistics

UPS and FedEx Deliverability Rates Drop Significantly

Aggressive discounting by UPS and FedEx during Q3 2024 lowered ground delivery rates to their lowest since 2021, according to the TD Cowen/AFS Freight Index. While this benefits large shippers with reduced costs, it may have implications for service quality and deliverability. Logistics experts caution that as carriers continue to cut prices, maintaining operational efficiency and speed could become a challenge, potentially affecting delivery times, especially for smaller customers who receive fewer discounts and may face delays.

Larger Discounts for Big Shippers

The data revealed that the most significant discounts were granted to high-volume customers, indicating a strategic push by the two delivery giants to lock in large accounts during a period of intense competition. As e-commerce continues to grow and consumer expectations for fast, affordable delivery rise, companies like UPS and FedEx have been forced to find ways to meet demand while protecting their market share. By offering more substantial discounts to larger shippers, they aim to retain key business clients in a highly competitive environment.

Broader Market Implications

This trend has broader implications for the logistics industry. The price war between UPS and FedEx signals a potentially long-term shift in how carriers price their services, particularly as global supply chain pressures and inflationary forces continue to affect operations. Despite cost-saving measures, including automation and logistics infrastructure improvements, the significant rate reductions may challenge carrier profitability if such discounts continue.

The question now is how long these aggressive pricing strategies can persist. While large customers are benefiting, smaller businesses may need to explore alternative options as their savings remain limited. Carriers will need to strike a balance between offering competitive rates and maintaining financial sustainability as the shipping landscape evolves.

Read Similar…

Surge Pricing on Shipping Dampens Profits of Logistics Firms

New Nespresso Partner for All-Electric Deliveries in London

Nespresso has partnered with logistics company HIVED to introduce fully electric deliveries in London. The collaboration is expected to reduce carbon emissions by up to 76% per parcel, saving 10,000 kilograms of CO₂ monthly while handling 60,000 deliveries. Nespresso’s goal is to provide an “elevated, seamless, and sustainable” experience, with HIVED offering a 99% first-time delivery success rate.

“As HIVED continues to expand its operations across London and beyond, this partnership is a great example of how HIVED can support major brands like Nespresso through its fast, reliable, and uncomplicated delivery experience for customers,” said a representative from HIVED. Nespresso added, “We want to make sure every delivery is elevated, seamless, and as sustainable as possible, which is why HIVED is the perfect partner to help us achieve this ambition.”

Growing Trend in Sustainable Logistics

This collaboration highlights the growing industry shift toward eco-conscious logistics. Leading companies like Amazon, UPS, and FedEx are also embracing electric fleets to meet consumer demands for greener services. Nespresso and HIVED’s initiative aligns with these developments, helping reduce emissions while maintaining high service quality.

A Blueprint for the Future of Deliveries

HIVED’s operational success—coupled with its environmental commitment—demonstrates how logistics providers can drive positive change. As the logistics industry undergoes transformation, this partnership serves as a model for how brands can collaborate with innovative providers to cut carbon emissions while ensuring excellent service.

The future of logistics is clearly leaning towards more sustainable solutions, and this partnership represents one of many steps companies are taking to create greener supply chains. Through efforts like this, Nespresso, alongside other industry leaders, is shaping the future of sustainable delivery services globally.

Read Similar…

Electric Cargo Bikes will Deliver Thousands of Packages

InPost announce new UK CEO, Neil Kuschel

InPost is proud to announce the appointment of Neil Kuschel as UK CEO with immediate effect. Neil brings extensive knowledge and a wealth of experience in the logistics and technology industries, with a focus on supporting UK eCommerce retailers in their growth journey. After a 20-year career with DHL, Neil joined the cross-border e-commerce enabler, Global-e, as European CEO, taking them through a successful Nasdaq IPO. He benefits from considerabe expertise in e-commerce retail technology and has a proven track record in leadership, business development and capital markets experience. This will enable him to play a crucial role in driving the InPost strategy and further disrupting the UK out-of-home e-commerce logistics market.

This appointment follows recent positive results for InPost as it announces record-breaking volumes, revenues and profits for 2023. In the UK, revenues increased by 150% to £87 million. Parcel volumes increased exponentially, with 17.2 million parcels successfully delivered in Q4 2023, a 196% increase on the previous year.

As pioneers in the industry, InPost is working to redefine deliveries – making the locker as ubiquitous as the post box. Its goal is to revolutionise parcel delivery in the UK by making lockers an affordable, convenient and quick  option, with Out of Home being the most environmentally friendly form of delivery. With InPost’s widespread network of parcel lockers and PUDO points, millions of consumers have the flexibility to choose anytime, anywhere delivery options.

Michael Rouse, CEO InPost International, commented: “We are delighted to welcome Neil to the InPost team at a pivotal time in the UK market as we continue to expand our reach and drive locker volumes. His extensive experience and in-depth knowledge of the industry will prove invaluable as we build on our achievements and continue to accelerate our growth strategy in the UK. I am confident that under Neil’s leadership, InPost is best placed to continue disrupting the UK out-of-home e-commerce logistics market and I look forward to working with him closely.”

Neil Kuschel commented: “I am thrilled to be joining InPost as UK CEO during such a pivotal time for the business. 2023 was a year of record-breaking growth for the company. Our innovative approach to lockers aligns perfectly with the evolving preferences of consumers for convenient, fast, affordable and sustainable collection and delivery options. By leveraging technology and strategic partnerships, we aim to revolutionise the way parcels are delivered and received.”

Read Similar…

Electric Courier Delivers Toilet Rolls

Shoppers Ditch Sustainability for Bargains

Today, Manhattan Associates Inc. (NASDAQ: MANH) announced the findings of a new study on Britain’s sustainable shopping habits in the lead-up to Christmas. At a time when consumer spending is typically high, the fallout from the cost-of-living crisis has revealed that low costs are trumping both sustainability considerations and convenient deliveries and returns, indicating that cost will be paramount for more shoppers this holiday season.

Shopping Sustainably

The survey conducted by YouGov found that 32% of Brits aren’t actively looking for sustainable products or brands when shopping online. This behaviour makes it clear that shoppers are now prioritising their pockets (even more so than shopping with brands who provide convenient deliveries and returns), proving that economic factors play a significant role when it comes to sentiments around sustainability: “The golden quarter and holiday season is well underway but clearly the state of the economy is having an effect on customer behaviour – unfortunately, it looks as if cost is trumping sustainability just now,” commented Craig Summers, Managing Director UKI, MEA & Nordics at Manhattan Associates.

However, outside of the festive season, the data revealed that shoppers are still concerned with sustainability as a broader topic, and that there are growing consumer expectations for businesses to be greener. To help achieve this, customers are willing to make some sacrifices. The research found that:

• Almost two-thirds (64%) of Brits believe it is important for businesses to offer sustainable packaging
• Over half (53%) expect a sustainable product lifecycle, with returned products being actively recycled and reused
• Over half (56%) are also willing to wait to receive multiple parcels in one delivery to cut down on carbon emissions

Retailer Requirements

Brands must find the right balance between providing customers with sustainability and affordability. Redesigning products to take into account sustainability (at the beginning of the design process), ensuring items can be recycled more easily and using more environmentally friendly materials at the outset of production are a vital first step and essential for any brand now facing increased regulatory scrutiny of green claims. On top of this, however, finding ways to decarbonise the supply chains that deliver products will be equally important: rethinking make-or-buy decisions and limiting the need for long-range logistics, setting procurement standards for suppliers and improving visibility across networks will result in a more sustainable retail industry overall.

“This year has been tough for retailers and consumers across the board. From the domestic cost-of-living crisis – magnified by inflation and higher interest rates – to an increasingly fractured macroeconomic environment, 2023 has proved challenging for retailers and consumers alike. While inflation is beginning to ease, the road to recovery will not happen overnight. It perhaps isn’t surprising that customers are prioritising costs above all other aspects right now, especially as we approach Christmas, but hopefully we will see greener shoots of recovery for the economy, and also consumer impetus for sustainability, return in the spring,” concluded Summers.

Last Mile Solution Centre

Fortna, a leading automation and software company for the full logistics value chain, has announced the development of the FORTNA Last Mile Solution Center. By leveraging a team of industry experts, the Last Mile Solution Center will support parcel and distribution businesses in automating last mile operations to improve processes, increase productivity and reduce costs.

Backed by over 15 years of experience in last mile automation and an installed base of more than 450 automated systems, the FORTNA Last Mile Solution Center is committed to maximizing last mile networks and operations with proven modular and bi-directional conveyors and sorters. The FORTNA Last Mile Solution Center introduces modularity and standardization of last mile automation to help organizations meet an operation’s needs for scalability, flexibility and simplified maintenance.

Additional benefits include a portfolio of solutions designed to fit any site-specific requirements in the network, future-proof operations and provide built-in ability to keep pace with business growth.
Downstream optimization is crucial to increasing throughput and driving cost reduction in a system. A recent statistic from the United Nations estimates that by 2030, the population living in big cities will increase by 55%, making last mile delivery critical for logistic companies. Last mile logistics centres are becoming even more crucial to the effectiveness of the entire distribution network. By optimizing downstream capabilities, companies can improve overall efficiency by reducing cycle times, optimizing delivery processes and tracking and visibility of parcels by using intelligent parcel data. This ensures a fast and reliable delivery experience for end consumers.

“FORTNA is an experienced partner to our customers with a comprehensive solution portfolio and deep knowledge and understanding of their needs,” says Antonio Amadasi, FORTNA Vice President, Last Mile Solution Center. The Last Mile Solution Center brings additional value to our mission and further helps to optimize downstream operations and reach positive business outcomes. The team will also address any further and dedicated product improvement in order to perfectly fulfil our customers’ needs”.

The FORTNA Last Mile Solution Center will partner with parcel and distribution companies globally by offering complete network solutions, including operational design and implementation, material handling automated equipment, robotics and a comprehensive suite of lifecycle services.

FORTNA partners with the world’s leading brands to transform omnichannel and parcel distribution operations. Known world-wide for enabling companies to keep pace with digital disruption and growth objectives, we design and deliver solutions, powered by intelligent software, to optimize fast, accurate and cost-effective order fulfillment and last mile delivery. Our people, innovative approach and proprietary algorithms and tools ensure optimal operations design and material and information flow. We deliver exceptional value every day to our customers with comprehensive services and products including network strategy, distribution center operational design and implementation, material handling automated equipment, robotics and a comprehensive suite of lifecycle services.

Subscribe

Get notified about New Episodes of our Podcast, New Magazine Issues and stay updated with our Weekly Newsletter.