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postal monopoly to end sooner than expected
Former Member
Posts: 1,876,323 The Mix Honorary Guru
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Why not? I can't see any reason to keep a monopoly and the Post Office as a business is crap. After doing temp work for them on two occasions I can understand the need for an alternative, competition may actually help as they are far too complacent and slack with their service.
Royal Mail has issues to sort out, but competition isn't necessarily the solution because business post and large volume mailings will be the business that they seek, which will lead to the neglect of the roadside pillar boxes and indivudally posted items.
As long as that is not allowed to change I don't really see a problem.
Prices will increase though - it costs relatively the same (for the postal service) to send one letter from here to scotland (here being leicester) as two. But if you have two companys running one letter each - the cost is doubled because there are 2 posties, 2 vans, 2 trains or planes, etc etc. And some people will inevitably use the other services, thus increasing the cost for Royal mail and the other providers wont get much profit, and in the end the services won't be that good (because there's not much profit incentive) and will be more expensive.
Basically the explanation of a natural monopoly - you don't need two postal services, one will do fine. That said, things like the national grid, railways, and such are natural monopolys too - but they're just cut up so different bits are provided by different people. Which I don't think is how the mail will work.