Parcel and Postal Technology International
  • News
    • A-E
      • Automation
      • Business Diversification
      • Construction / Development
      • Cross-border
      • Delivery
      • E-commerce
      • Expo
    • F-O
      • Freight
      • IT & Systems
      • Last Mile
      • Lockers / PUDO
      • Logistics
      • Mail
      • Operations
    • P-R
      • Packets
      • Parcels
      • Peak
      • Retail
      • Returns
    • S-Z
      • Sorting Systems
      • Staff / Personnel
      • Sustainability
      • Technology
      • Vehicles / Fleet
  • Features
  • Online Magazines
    • March 2025
    • September 2023
    • June 2023
    • March 2023
    • December 2022
    • SHOWCASE 2019
    • Archive Issues
    • Subscribe Free!
  • Opinion
  • Videos
  • Analysis
  • Awards
    • 2025 Awards
    • Previous Winners
  • Supplier Spotlight
  • Parcel + Post Expo
LinkedIn YouTube Twitter
  • Sign-up for Breaking News Emails
  • Meet the Editors
  • Contact Us
  • Media Pack
Subscribe
LinkedIn Facebook
Parcel and Postal Technology International
  • News
      • Automation
      • Business Diversification
      • Construction / Development
      • Cross-border
      • Delivery
      • E-commerce
      • Expo
      • Freight
      • IT & Systems
      • Last Mile
      • Lockers / PUDO
      • Logistics
      • Mail
      • Operations
      • Packets
      • Parcels
      • Peak
      • Retail
      • Returns
      • Sorting Systems
      • Staff / Personnel
      • Sustainability
      • Technology
      • Vehicles / Fleet
  • Features
  • Online Magazines
    1. December 2024
    2. September 2024
    3. June 2024
    4. March 2024
    5. SHOWCASE 2019
    6. Subscribe Free!
    Featured
    April 2, 2025

    In this Issue – March 2025

    Online Magazines By Web Team
    Recent

    In this Issue – March 2025

    April 2, 2025

    In this Issue – December 2024

    December 5, 2024

    In this Issue – September 2024

    September 19, 2024
  • Opinion
  • Videos
  • Analysis
  • Awards
    • 2025 Awards
    • 2024 Award Winners
    • 2023 Award Winners
    • 2022 Award Winners
    • 2021 Award Winners
    • 2020 Award Winners
    • 2019 Award Winners
    • Previous Winners
  • Supplier Spotlight
  • Parcel + Post Expo
LinkedIn Facebook
Subscribe
Parcel and Postal Technology International
Opinion

OPINION: Postal paradigm shift – the future of the USO

John Tuohy, CEO, OOHPodBy John Tuohy, CEO, OOHPodFebruary 7, 20245 Mins Read
Share LinkedIn Twitter Facebook Email

With a history dating back almost 400 years to the reign of King Charles I, Royal Mail has been a mainstay in British history. In recent years, the postal operator has been besieged by problems, from financial losses to staff strikes, but it has remained a part of daily life in the UK.

However, we find ourselves at a point where Royal Mail and its international counterparts’ position in society is under threat. That is due to a realization – belated, in my opinion – that the universal service obligation (USO) to which the world’s national postal operators are tied is no longer fit for purpose.

As the postal industry’s regulator in the UK, Ofcom, has acknowledged, the USO ‘risks becoming unsustainable’ in the face of steeply declining mail volumes and intense commercial competition.

In outlining proposals for what should happen to prevent that occurring, Ofcom has entered very sensitive waters – after all, Royal Mail is part of the very ‘fabric of society’. Therein, I believe, lies the problem.

Cumbersome operations
Bold decisions need to be made to take account of the radical changes we have seen in delivery services in the last 20 years alone. Vast, agile and hugely profitable corporations have sprung up, driven principally by the demand from online shoppers for ever greater convenience.

Despite being entrusted with handling a much larger number of parcels itself, many national postal operators like Royal Mail have been wedded to costly and cumbersome obligations which require them to process and deliver letters six days a week, both to major conurbations and remote locations.

Were that commitment to remain unaltered, the need to offer a standard price delivery service to 32 million addresses across the UK would be a considerable albatross around its neck.

In the case of Royal Mail, Ofcom has calculated that cutting deliveries by only one day a week would generate an annual net saving of up to £200m (US$255m). Halve the current schedule and the cost benefit could be more than three times as much.

Such a prospect is and has been unacceptable to some people for some time. Royal Mail’s previous attempts to reduce the USO burden have been met with stiff resistance. During a parliamentary debate last January, Labour MP Rachel Hopkins suggested that a reduction would be “hugely detrimental to the scope and quality of the UK’s universal postal service”.

I strongly disagree and – what’s more – I think that with an issue as tricky but structurally and economically important as Royal Mail’s future, any decision as to what comes next should be based on common sense and not pure sentiment, as understandable as the attachment to the service is.

Embrace change
Other major countries have managed to adapt their USOs without too much trouble. Among the most progressive are the Nordic posts. Norway has adopted an alternate day service, with mail delivered on Monday, Wednesday and Friday one week and Tuesday and Thursday the following week. Denmark – one of Posten’s partners in PostNord – has gone even further, scrapping its USO from the beginning of this year.

France, Germany and Australia, to name but a few, have also made substantial changes to their USOs, so why can’t the UK?

If those wedded to the idea of the USO refuse to budge, I think that Royal Mail should be compensated for its future obligations. Again, other countries, such as Denmark, France and Italy, have done so.

Even as Ofcom opened a 10-week consultation on its proposals, it emphasized that “downgrading delivery targets is not an option for reform” . I don’t think that they need be. While letter post has stagnated, the technology of logistics has thrived.

By making the sort of substantial savings possible by being released from the USO as it has stood in the UK since the Postal Services Act 2011, Royal Mail can still capitalize on some of the new infrastructure which has developed in recent years to maintain – and even enhance – its service.

One comprehensive study published last year reckoned that the UK had some 60,000 PUDO points and self-service locker terminals – an impressive tally and one that is growing all the time.

To avail itself of that existing network would provide Royal Mail a ready-made final-mile option with both economic and environmental benefits.

Consolidating mail and other types of goods, including groceries and medicines, that are already being delivered to people’s homes means that even the needs of those with limited mobility can be addressed.

I think that a 50% reduction in weekly deliveries in one go would be too much of a culture shock. I don’t underestimate or relish the challenge in negotiating any prospective shift within a heavily unionized industry.

Even so, change is essential and happening elsewhere. If Royal Mail is not allowed to change its USO terms, it may not have much of a future to speak of.

Share. Twitter LinkedIn Facebook Email
Previous Articlebpost begins relocation to Evere distribution center
Next Article USPS announces 2030 greenhouse gas emissions targets

Related Posts

Opinion

OPINION: How Chinese CEP giants are shaping the future of Europe’s last-mile logistics

May 14, 20255 Mins Read
Opinion

OPINION: The impact of open smart locker networks on the future of parcel logistics

April 23, 20254 Mins Read
Opinion

OPINION: The challenges of expanding out-of-home delivery in the UK

April 2, 20255 Mins Read

Receive breaking stories and features in your inbox each week, for free


Enter your email address:


Latest News

Yeep! rolls out 1,000th locker in the UK

June 13, 2025

Sameday acquires private courier Cargus

June 13, 2025

THG Fulfil to increase sorting capacity with 430 Libiao robots

June 12, 2025
Getting in Touch
  • Contact Us / Advertiser
  • Meet the Editors
  • Download Media Pack
  • Breaking News Emails
Our Social Channels
  • Facebook
  • LinkedIn
Supplier Spotlights
  • Prime Vision B.V.
  • Cookie Policy
  • Privacy Policy
  • Terms & Conditions
  • Notice & Takedown Policy
  • Site FAQs
© 2025 UKi Media & Events a division of UKIP Media & Events Ltd

Type above and press Enter to search. Press Esc to cancel.

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.

CookieDurationDescription
cookielawinfo-checkbox-advertisement1 yearSet by the GDPR Cookie Consent plugin, this cookie records the user consent for the cookies in the "Advertisement" category.
cookielawinfo-checkbox-analytics1 yearSet by the GDPR Cookie Consent plugin, this cookie records the user consent for the cookies in the "Analytics" category.
cookielawinfo-checkbox-functional1 yearThe GDPR Cookie Consent plugin sets the cookie to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary1 yearSet by the GDPR Cookie Consent plugin, this cookie records the user consent for the cookies in the "Necessary" category.
cookielawinfo-checkbox-others1 yearSet by the GDPR Cookie Consent plugin, this cookie stores user consent for cookies in the category "Others".
cookielawinfo-checkbox-performance1 yearSet by the GDPR Cookie Consent plugin, this cookie stores the user consent for cookies in the category "Performance".
elementorneverThe website's WordPress theme uses this cookie. It allows the website owner to implement or change the website's content in real-time.
JSESSIONIDsessionNew Relic uses this cookie to store a session identifier so that New Relic can monitor session counts for an application.

Functional

Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.

CookieDurationDescription
__cf_bm30 minutesCloudflare set the cookie to support Cloudflare Bot Management.

Analytics

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.

CookieDurationDescription
CONSENT2 yearsYouTube sets this cookie via embedded YouTube videos and registers anonymous statistical data.
uidsessionThis is a Google UserID cookie that tracks users across various website segments.
vuid1 year 1 month 4 daysVimeo installs this cookie to collect tracking information by setting a unique ID to embed videos on the website.
_ga1 year 1 month 4 daysGoogle Analytics sets this cookie to calculate visitor, session and campaign data and track site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognise unique visitors.
_ga_*1 year 1 month 4 daysGoogle Analytics sets this cookie to store and count page views.

Advertisement

Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.

CookieDurationDescription
OAGEOsessionOpenX sets this cookie to avoid the repeated display of the same ad.
OAID1 yearCookie set to record whether the user has opted out of the collection of information by the AdsWizz Service Cookies.
VISITOR_INFO1_LIVE5 months 27 daysYouTube sets this cookie to measure bandwidth, determining whether the user gets the new or old player interface.
YSCsessionYoutube sets this cookie to track the views of embedded videos on Youtube pages.
yt-remote-connected-devicesneverYouTube sets this cookie to store the user's video preferences using embedded YouTube videos.
yt-remote-device-idneverYouTube sets this cookie to store the user's video preferences using embedded YouTube videos.
yt.innertube::nextIdneverYouTube sets this cookie to register a unique ID to store data on what videos from YouTube the user has seen.
yt.innertube::requestsneverYouTube sets this cookie to register a unique ID to store data on what videos from YouTube the user has seen.

Others

Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.

CookieDurationDescription
VISITOR_PRIVACY_METADATA5 months 27 daysDescription is currently not available.

SAVE & ACCEPT
Powered by