Who owns the Royal Mail? Postal service could reduce number of letter delivery days from 6 to 3 per week, reform proposals suggest

In a bold move that could reshape the future of the Royal Mail, reform proposals are being considered to reduce the number of letter delivery days from six days per week to three.

A report from the regulator stated that the Royal Mail's postal services were getting out of hand and action needed to be taken. Therefore, the authorities announced the reduction in delivery days on Wednesday, January 24, 2024, as per BBC.

The company was privatized between 2013 and 2015 but is legally obliged to deliver six days a week as a universal service. However, as per the publication, Royal Mail's current delivery network could be more sustainable.

According to The Standard reports, Royal Mail is expected to be investigated by Industry Watchdog, as the courier company failed to meet the target of 93 percent mails per day. The company delivered 73.7 percent First Class mail in a day last year.

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Who owns the Royal Mail?

Royal Mail used to be a public service managed by the UK government. However, in 2011, the Government passed a "Postal Services Act," which allowed the private sector to own 90% of Royal Mail, whereas 10% remained under the Government.

In 2013, when it went public on the London Stock Exchange, the Government kept a 30 percent ownership stake in Royal Mail, but in 2015, the remaining shares were sold to Chancellor George Osborne.

According to The Standard, former Secretary of State for Business and Trade UK, Vince Cable, said in 2013,

"The Government's decision on the sale is practical, it is logical, a commercial decision designed to put Royal Mail's future on a long-term sustainable business."

The Prince Of Wales Visits The Royal Mail's Delivery Office And Corinum Museum (Image via Getty)

However, Royal Mail's largest shareholder is Czech billionaire Daniel Křetínský. He is the owner of the Vesa Equity Investment group.

Moreover, in 2020, the 46-year-old billionaire, Křetínský, by owning the stakes in Sainsbury's and West Ham United, was marked as the largest shareholder. The billionaire has not commented publicly on any strikes.

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Reform proposals hint at 3-day weekly letter delivery by Royal Mail

Having undergone privatization from 2013 to 2015, the company is under a legal obligation to provide a universal service. This entails the current requirement to deliver letters throughout the week from Monday to Saturday and parcels exclusively from Monday to Friday.

However, on January 24, 2024, a company reform proposal was announced for a reduction in delivery services due to failed deliveries in 2023, according to BBC. Moreover, the Office of Communications, commonly known as Ofcom, stated that it would consider whether any "exceptional events" could account for the shortfall of courier and mail deliveries.

Dame Melanie Dawes, the chief executive of Ofcom, mentioned that the reform possibilities are being presented for a "national discussion," and an update is planned for the summer. She told BBC Breakfast,

"Something's got to give, or the service is going to be too costly, and either stamp prices will go up or it will become unsustainable."

In May 2023, the Royal Mail's CEO, Mr. Simon Thompson, resigned, as Sky News reported. Reportedly, he said,

"I have been incredibly proud to lead Royal Mail during this crucial period in its 507-year history. The changes we have made, the infrastructure we have put in place, and the agreements negotiated with our trade unions mean that Royal Mail now has a chance to compete and grow."

The proposed reduction in letter delivery by Royal Mail is yet in the decision-making process. As per BBC, the UK government said earlier this week that they would not support Royal Mail in scrapping courier or mail deliveries for Saturdays.