The Government recently faced a fresh controversy over its plans to privatize the Royal mail service. The business secretary Vince Cable said confirming that the privatization steps are being pressed ahead. In the coming few weeks, an IPO is expected. The day will be very crucial for the Royal mail employees and other concerned dignitaries. First, let us not limit our knowledge or act biased. There are both, pros as well as cons of the privatization option. The royal mail number can be found online. You can enquire about their services at present or any other details you want.
There is more to it than feeling sentimental for the postman. Privatizing will lead to an increase in the overall money the mail service raises every year. It will become highly competitive to compete with other private sector giants like the Amazon. One of the major threat encroaching the business of royal mail is Amazon. hence, privatizing became mandatory up to some extent. The Royal mail has already received support from the taxpayer who took its £10bn worth of pension deficit. If privatization was not set into action, they would be required to pay more. Now the money could better be spent on hospitals and schools.
Earlier we have seen Germany and the Netherlands privatizing its postal services. They have retained their system of six-day service. After seeing all the pros, now let us try to know why is there such strong opposition from public. Majority people do not want the privatization of the mail service. There are quite a few reasons to back their resentment. The major reason being, the taxpayers would feel cheated on their shares getting sold at a cheaper price. The overall pricing of the service is expected to increase under private intervention. The universal service principle is getting destabilized which is a huge concern.
According to the universal service, a person can post letter anywhere in the UK and rely on its delivery. However, now this system is getting out of the track. Privatization is expected to lead to the modernization of the service to a great extent. Modernization will increase its competency in the field where there are some major threats emerging from it. Since past two decades almost, the privatization attempts were on board. Finally, this year it is marked by a silver lining. The impact is still unforeseen.
The inflexibility and lack of investment faced by the Royal mail are now hoped to disappear. Its major competitors have mail delivery systems much cheaper and lucrative. The Royal mail has missed out on its competitive strategies. Now it’s time the business must be turned to a profitable side. Hence, the privatization is aimed at bringing market benefits for the Royal mail. Its 40% shares are sold and other 10% are sold to be handed over to its 1.50,000 employees. The privatization scheme is in a volatile state now. Despite the strong opposition, authorities are not going to back from this step. People are anticipating for a better performance of the Royal mail.