Royal Mail acquires same day delivery company eCourier
Royal Mail has announced it acquired eCourier, a same day delivery company that operates mainly in the Greater London area, although offering nationwide distribution. Royal Mail already has Royal Mail Sameday, but by combining eCourier and its existing courier business, the British postal service company can become a significant player in the UK same day delivery market.
According to Moya Greene, who is the CEO of Royal Mail, the acquisition of eCourier marks another milestone in the company’s goal of increasing their presence in growth areas of the parcels market. Same day delivery is estimated to be worth over 715 million euros in the UK, and this premium segment of the parcels market is growing at around 4-5 percent per year. “While it is principally a B2B market, the currently modest B2C segment is expanding rapidly, driven by the ecommerce trends and the increasing consumer demand for faster fulfilment”, Royal Mail explains on its website.
The news of the acquisition was being followed by Royal Mail’s financial results for the half year ended 27 September. The company reported a fall in half-year profits of almost 15 percent. Letter volume decreased by 4 percent during this period, while its parcel volume increased by 4 percent. The postal service company reported adjusted pre-tax profit of about 343 million euros against 410 million euros a year earlier.
eCourier generated revenue of approximately 27 million euros last year. Its main shareholder and CEO, Ian Oliver, will remain in role now the company is acquired by Royal Mail.