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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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Business & education services

Royal Mail shunned as Post Office chooses French rival instead

Until recently Post Office was only permitted to distribute parcels via Royal Mail and Parcelforce

Royal Mail PLC (LSE:RMG) (LSE:RMG) shares fell after the company was dealt a new blow by the Post Office after their relationship was renegotiated late last year.

The Post Office has signed up French-owned DPD to carry out its click-and-collect courier services for online shoppers.

In December, the Post Office freed itself from a long-term agreement that stipulated it was only permitted to distribute parcels via Royal Mail and Parcelforce.

DPD, which is the second-biggest courier company in the UK behind Royal Mail, is the first company to have been selected by the Post Office since this deal ended.

RMG shares opened 1% lower at just over 500p.

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