Whistl stops home deliveries in the UK
Whistl had stopped its home deliveries in the United Kingdom. The Dutch-owned business will however continue developing its other activities in the UK, such as downstream access (DSA), door drop media, packets & parcels and logistics.
The postal company announced the news on its website, explaning the PostNL and Whistl management have reviewed the end-to-end (letter delivery to consumers’ homes) operation and concluded “there’s no viable alternative solution that will ensure a sustainable future for the current service”. In other words, it suspended deliveries of three million letters a week.
Whistl began its end-to-end service in 2012, but it was put on hold due to numerous regulatory issues. According to the company, this impacted on their ability to invest in the service and expand their coverage. Private equity company LDC decided not to invest, which triggered a review by the PostNL and Whistl management.
‘We suggested a different business model’
Les Bayliss, who’s the national officer for the Community Union, told the Mirror this is devastating news for their members as for many of them it was a route out of unemployment. “We had identified almost 7 million euros in annual savings and suggested a different business model, but clearly this wasn’t enough for the company. Unfortunately, PostNL were not in a position to fund continued losses, despite the savings identified”, he says.
So, Whistl will stop with home deliveries, but will continue to collect about 80 million items a week to be fed into the Royal Mail system for final delivery, this is called downstream access (DSA). “In addition, we also have a long established door drop media division and are growing in packets and parcels and logistics”, the postal company says.
Whistl states it’s a profitable company achieving year-on-year growth for the past ten years and that’s it’s the second largest postal operator in the UK with 55% of the DSA market.