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Royal Mail to introduce Amazon-style parcel lockers

Published 27/12/2023, 12:16
© Reuters Royal Mail to introduce Amazon-style parcel lockers
IDSI
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Proactive Investors - Royal Mail (LON:IDSI) is set to introduce Amazon-inspired parcel lockers to ease collections for customers, albeit while the postal firm faces a backlash for neglecting its deliveries of letters.

Nick Landon, chief commercial officer at the group, revealed the company is exploring the use public lockers where parcels can be securely stored and retrieved using a passcode.

As Royal Mail intensifies its focus on parcels, accounting for approximately 70% of its revenue, the introduction of lockers is seen as crucial to address market demands.

The strategy follows the company's aspiration to establish a more diversified and balanced parcels-led international business.

However, concerns have been raised about Royal Mail's alleged neglect of letters in favour of more lucrative parcel deliveries.

The company is urged to clarify its priorities amid accusations that first-class letters are left unattended in sorting offices while parcels are prioritised for delivery.

These allegations surfaced after an undercover investigation by The Sunday Times.

The business and trade committee of Parliament has sought answers from Royal Mail's chief, Martin Seidenberg, regarding these "disturbing" claims.

Despite the legal obligation to deliver letters six days a week, Royal Mail has faced challenges in meeting punctuality targets, resulting in a £5.6 million fine by Ofcom for late deliveries.

International Distributions Services PLC, Royal Mail's parent company, is down 1% on Wednesday at around 275p per share.

Read more on Proactive Investors UK

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