Royal Mail have become “incredibly uncompetitive”, says founder

Here's how Smarta 100 winners are looking to use this to grab a bigger market share.

"The new prices the Royal Mail has introduced make it incredibly uncompetitive in the parcel delivery market," said David Grimes, founder of "Business customers don't fare any better, with the same size parcel costing just as much for them, regardless of the amount of parcels sent."

Royal Mail contract prices increased by an average of 5% on 2 April and a 2.5% fuel surcharge was placed on small businesses. The decision sent instant ripples around the parcel delivery industry.

With private companies now a more cost effective option than ever before, has taken full advantage of the situation.

Closer competition

"We saw an immediate jump," Grimes said. "We ran a big email campaign highlighting our services and saw a great response in orders."

Until recently, private companies have found it very difficult to compete on price with the Royal Mail but that's changed. Now, the Royal Mail is relying on its market position within parcel delivery to remain the biggest brand.

"Their branding is still a problem for us," Grimes said. "Not enough people are aware of what we do. Our biggest challenge is getting small businesses to realise they don't have to tread down to the post office."

Grimes doesn't believe Royal Mail will stop being a prominent player in the market. Their heritage and competitiveness in letter delivery will keep their name growing.

"However, when it comes to parcels," Grimes continues, "their high prices and the alternative options that can be utilised by small businesses mean they will struggle to compete with the rest of the market."

We use cookies to create the most secure and effective website possible for our customers. Full details can be found here