Royal Mail to offer free parcel pickup from home as it returns to dividend payouts

A Royal Mail deliverer. Photo: Gareth Fuller / PA via Getty

Royal Mail (RMG.L) announced Tuesday that it would be offering free home-from-home parcel collections to boost delivery.

The service is free until May 30th and means that in addition to postage, customers can collect up to five parcels per day free of charge with the Parcel Collect service.

It usually costs 72p for a package or 60p for a return. If an item does not have prepaid postage, customers can pay for postage online using Click & Drop, available at send.royalmail.com or through the Royal Mail app, according to Royal Mail.

Blocking and ordering at home has meant peak times for postage and courier services. However, changes to the rules over Christmas in England resulted in Royal Mail coming under fire for seriously securing packages and letters. The service was also messed up in January when new restrictions were put in place due to the end of the Brexit transition period.

The free pick-up offer is the latest step to cement its place in the busy UK delivery market and mirrors the services of courier companies like Hermés.

Customers must book a pick-up through Parcel Collect. When a postman picks up the package, the customer receives an email notification that serves as proof of postage.

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Nick Landon, Royal Mail’s Chief Commercial Officer, said: “This promotion gives all consumers across the UK the opportunity to try this fantastic service for free.

“Parcel Collect is part of our commitment to continually making our services more convenient by reinventing the way we deliver to and from our customers.”

News of the offer came when Royal Mail said it would pay a one-time final dividend after reporting a pickup in mail volume earlier this month.

The company has maintained its 2020/21 earnings outlook and confirmed its adjusted operating profit of £ 700 million ($ 964 million) for the year ended March 28th. The final dividend is 10p per share.

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The group’s stock was up nearly 2% after the news by mid-morning in London.

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