Daniel Kretinski, the Czech billionaire preparing to take over Royal Mail, has unveiled a transformative vision for the company, which includes a £400m investment to create a network of drop boxes and delivery lockers across the UK.
The move could significantly impact tens of thousands of postal delivery jobs and the fate of the iconic red pillar boxes.
In a rare public statement, Kretinsky, whose £3.5bn bid was approved by the board of Royal Mail's parent company, International Distribution Services (IDS), highlighted the importance of out-of-home delivery systems to the company's future. He stressed the need for immediate investment to avoid a harmful impact on the postal market share.
Kretinsky's proposal includes merging Royal Mail with its European counterpart PostNL, in which it owns a 31% stake. Speaking to Reuters, he stressed the urgent need to adapt to out-of-home delivery trends prevailing in continental Europe and the United States.
“It is important for logistics companies to invest now in out-of-home delivery solutions,” Kretinsky said. It plans to allocate up to £400 million to develop a network of drop boxes and delivery lockers, reducing the need for door-to-door deliveries.
Trade unions and industry experts have expressed concerns that the shift could lead to widespread job losses and the phasing out of many red bollard boxes, which have been a staple of British streets for more than a century. Critics see this strategy as a cost-cutting measure disguised as innovation.
However, Kretinsky insists that without embracing out-of-home solutions, Royal Mail risks losing market share in a rapidly evolving postal industry. He envisages installing around 20,000 remote parcel boxes across the UK, which he believes will boost efficiency and reduce costs.
This structural change is in line with Kretinsky's broader strategy to modernize Royal Mail, making it more competitive in the global market. He points out that these changes would be easier to implement if Royal Mail were privately owned and free from scrutiny as a public company.
In the takeover documents, Kretinsky assured Royal Mail's 130,000 staff and government ministers that he would adhere to the universal service commitment to offer a six-day week for at least five years. In addition, he pledged to maintain current salary and benefits levels for at least two years after the acquisition.
However, Chancellor Jeremy Hunt raised concerns about the adequacy of Kretinsky's three-year commitment not to dismantle Royal Mail. Hunt noted that the government may need to extend this commitment to ensure the stability and integrity of the postal service.
Kretinsky has also committed to retaining the Royal Mail name, the Royal Code, and maintaining the company's headquarters and tax residence in the UK for the next five years. Despite these assurances, the proposed changes have sparked debate about the future of Royal Mail and its role in the UK postal and logistics landscape.
As Royal Mail faces this potential reform, the coming weeks will be crucial in determining the company's course and its impact on employees and the services it provides to the British public.
