International Distribution Services (IDS)

Sector:

Commercial Transport

Index:

FTSE 250

336.20p
   
  • Change Today:
      2.20p
  • 52 Week High: 337.00
  • 52 Week Low: 196.15
  • Currency: UK Pounds
  • Shares Issued: 958.29m
  • Volume: 6,790,259
  • Market Cap: £3,221.78m
  • RiskGrade: 103

Parcel customers to be treated 'more fairly' under Ofcom proposals

By Josh White

Date: Thursday 09 Dec 2021

LONDON (ShareCast) - (Sharecast News) - Senders and recipients of parcel deliveries are set to be treated "more fairly" by carriers under new protections proposed by the communications regulator Ofcom on Thursday, following an investigation into the sector.
Ofcom said it had found that 64% of customers had experienced problems with deliveries in the last three months, with about a quarter of senders finding it difficult to make a complaint, or to contact parcel operators, when a delivery goes wrong.

It said two in five found complaints were only partially resolved, while almost one in 10 were left with their complaint completely unresolved.

The regulator said its evidence also suggested an "inconsistent" level of service across the industry, with customer satisfaction scores on complaints handling ranging from 29% for one operator, to 71% for another.

As a result, Ofcom said it was proposing new guidance requiring all parcel firms to tighten their complaints handling, as well as planning to require better protections for disabled customers, who were almost 50% more likely to experience "significant problems" with deliveries.

Under existing rules, all postal operators needed to have a "simple and transparent" complaints process, with the new guidance requiring firms to make it clear to customers who they can contact, and what channels they could use to make a complaint.

Delivery operators would also be required to tell customers what the complaint process would be, how long it would take to resolve, and ensure complaints were dealt with by staff with "appropriate" training.

Ofcom was also proposing a new requirement for parcel firms to establish, publish and comply with "clear and effective" policies and procedures for the fair treatment of disabled customers.

It said that would include ensuring that disabled customers could communicate their delivery needs to the parcel operator, and setting out how couriers would meet those needs when delivering parcels.

The regulator said that if "substantial improvements" in customer service and complaints handling were not achieved, it would then consider enforcement action or further regulation.

"Parcel deliveries have become increasingly important to our daily lives and customers rightly expect a positive experience," said Ofcom's networks and communications group director Lindsey Fussell.

"We're planning to strengthen our rules to make sure people are treated fairly by delivery firms.

"If we don't see significant improvements in customer service, we'll consider enforcement action or tighten regulations further."

Ofcom also said it was looking to maintain "strong regulation" of Royal Mail as the UK's universal postal service provider.

As the universal provider, Ofcom sets "strict" annual delivery targets on the company and imposes a cap on second-class stamp prices, with its review finding that the rules and safeguards were "generally working well".

As a result, Ofcom said it was proposing to maintain the current framework for regulating Royal Mail for a further five years.

"We continue to be concerned about Royal Mail's efficiency performance," Ofcom said.

"To increase our understanding of its longer-term sustainability outlook for the universal service, we propose requiring the company to set out its longer-term efficiency ambition and report publicly on progress against this."

Ofcom said a consultation on its review of postal regulation would close on 3 March, with its final decisions set to be published next summer.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

IDS Market Data

Currency UK Pounds
Share Price 336.20p
Change Today 2.20p
% Change 0.66 %
52 Week High 337.00
52 Week Low 196.15
Volume 6,790,259
Shares Issued 958.29m
Market Cap £3,221.78m
RiskGrade 103

IDS Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value Not Available
Price Trend
85.61% above the market average85.61% above the market average85.61% above the market average85.61% above the market average85.61% above the market average
69.23% above the sector average69.23% above the sector average69.23% above the sector average69.23% above the sector average69.23% above the sector average
Income
91.45% below the market average91.45% below the market average91.45% below the market average91.45% below the market average91.45% below the market average
60% below the sector average60% below the sector average60% below the sector average60% below the sector average60% below the sector average
Growth
56.94% below the market average56.94% below the market average56.94% below the market average56.94% below the market average56.94% below the market average
53.85% below the sector average53.85% below the sector average53.85% below the sector average53.85% below the sector average53.85% below the sector average

What The Brokers Say

Strong Buy 1
Buy 1
Neutral 4
Sell 0
Strong Sell 1
Total 7
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

IDS Dividends

  Latest Previous
  Final Final
Ex-Div 22-Aug-24 28-Jul-22
Paid 30-Sep-24 06-Sep-22
Amount 2.00p 13.30p

Trades for 31-May-2024

Time Volume / Share Price
08:24 500,000 @ 334.00p
16:40 318,543 @ 335.50p
17:04 32,055 @ 333.77p
17:04 32,055 @ 333.60p
17:04 1,385 @ 333.77p

IDS Key Personnel

CEO Martin Seidenberg
CFO Michael Frederick Snape

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