The news that Deutsche Post, of which the DHL brand is a part, is to buy UK Mail, should be welcomed by UK consumers, according to parcel broker ParcelHero.
The company believes that the takeover will secure the future of UK Mail Group’s services and will help ensure Deutsche Post/DHL’s quality and expertise is bought to the UK’s domestic parcels market. It also believes that the combination of UK Mail with DHL Express’ UK operation would make the parcel business second only to the Royal Mail in the UK.
David Jinks MILT, ParcelHero’s Head of Consumer Research said, “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; it’s shares are up 43% this morning.’
With UK Mail having more than 50 depots and 2,400 delivery vehicles, the takeover looks to help boost Deutsche Post’s presence in the domestic UK parcels market. UK Mail’s domestic services will also look to compliment Deutsche Post’s DHL Express UK parcel services, which are popular amongst consumers shipping parcels to Europe and beyond.