Mar 23, 2008

TNT to launch final mile service in ‘near future’


TNT Post, the mail distributor, is close to rolling out final-mile delivery and is understood to have trialled the service in Liverpool.

Print industry sources close to the company have told PrintWeek that trials have already taken place in the city. Other cities also being lined up are understood to include Manchester and London.

It is thought the trials are the first stage in TNT Post launching a nationwide delivery service to rival Royal Mail, a move that could lead to lower prices for mailing houses and DM printers.

Originally the service will concentrate on commercial addresses, but will grow to encompass residential too.

TNT declined to comment on any trial in Liverpool, but confirmed that it is planning to make an announcement on final-mile delivery soon.

A spokesman said: “As part of its growth strategy, TNT Post is currently looking at a number of potential locations in which it can develop an end-to-end solution and hopes to provide further information on some of these locations in the near future.
“The company intends to offer this service to local businesses as well as big national mailers.”

Jonathan DeCarteret, senior market analyst at postal consultant Post-Switch, said that the move “marks the first serious challenge to Royal Mail”.

He added: “If successfully rolled out, prices would almost certainly drop, performance levels are likely to increase, and mail would no longer be affected by industrial action and subjected to Royal Mail’s annual price hikes.”

Alex Walsh, head of postal affairs at the DMA, added: “If this is successful and leads to greater coverage, then it is a very exciting development. Any alternative to the Royal Mail will lead to greater development and choice.”

Source: printweek

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