UK Mail Group Purchased by Deutsche Post – Expect an increase in quality!
UK Mail have just been bought out by Deutsche Post in a deal that saw the exchange of £243 million. This should come at the delight of Uk customers as the DHL brand are known for their excellent quality in the delivery industry.
Indeed, ParceHero’s Head of Consumer Research, David Jinks states: ‘It’s no secret that UK Mail had some serious issues last year when it spent £20m on a new automated hub near Coventry; but hit some serious problems in sorting certain sizes of packages. Its profits fell 28% and customers were very unhappy. While it had largely sorted its issues by Christmas, UK Mail’s shares fell by 18% over the last year. Clearly the take-over has been welcomed by shareholders; its shares are up 43% this morning.’
The new management will provide a presence of Deutche Post in the UK’s domestic parcels market which is ever growing due to the wonders of the internet and ever expanding e-commerce marketplace.
UK Mail currently has more than 50 depots and 2,400 vehicles ready to deliver. This can be expected to grow with the influence of Deutsche Post’s management and will also go hand-in-hand with Deutsche’s DHL Express parcel service, which is already an extremely popular option for those looking to ship parcels to Europe and further abroad.
To understand the scope of the purchase, we must realise that the combination of both the UK Mail and DHL Express’ UK services make the parcel company the second largest in the UK, falling only to the Royal Mail. Parcelhero’s David Jinks comments: ‘This could lead to an investigation into the deal by the regulatory authorities. We don’t see the deal as leading to any kind of monopoly, however: so it is to be hoped this won’t lead to too many delays and entanglements.’
David continues to add: ‘Deutsche Post has been developing its parcels operations across Europe recently…It bought shares in Relais Colis SAS of France in January and has acquired or set up parcel operations in 16 European countries. Obviously this purchase indicates the company is not over-concerned about the impact of Brexit on the UK parcels market; and, if the worst were to happen and tariffs are imposed on UK-EU shipments, gives it a stronger foot in the UK domestic market, which could grow as more items are sourced and mailed from within Britain, rather than facing import tariffs.’