Liberalization to be continued...
Cracow, 21th December, 2012
Liberalization to be continued…
Prices of the privileged Poczta Polska hit the individual customers and public institutions
On the eve of linearization of the postal market, and acquisition of this market by Poczta Polska – the „designated” operator, the incumbent informed about an apparent service price reduction. On the pretext of reducing the weight ranges and saving customers’’ time, in fact Poczta Polska increased the price of the most common shipments weighing up to 50gand constituting as much as 75% of the total market, by 0.05 PLN. Not only the individuals but mostly the public institutions won’t gain anything on that.
Only the companies that give a chance to independent postal operators when announcing tender are in favour of the national operator and may count on individual pricing below the real service cost, although to the detriment of state economy and the citizens. In turn, the institutions that do not take into account other companies except Poczta Polska during the tender process, because how to explain the rate of 0.8 PLN offered by the national operator for ZUS (Social Insurance Institution), while KRUS (Agricultural Social Insurance Fund) was offered 1.55 PLN for the same service, because of no other competitors in the tender process.
In 2012, ZUS paid Poczta Polska 140m PLN for the implementation of a year contract currently valued at 150m PLN (in 2 years’ time). Therefore, by InPost participation in the tender for the next two years, ZUS saved almost 150m PLN out of the estimated amount of 300m PLN. That unusual 50% discount of Poczta Polska resulted from a real danger of losing the contract to an independent operator. In turn, KRUS which hasn’t taken into account suppliers other than Poczta Polska will pay 1.55 PLN per letter for similar services. The institution responsible for the social insurance of farmers will lose 12m PLN because of the malformed TOR of the project.
The situation is negatively commented by Rafał Brzoska, CEO of InPost; „Unfortunately, in Poland only 5% of institutions prepare the tender specifications (ToR) in an honest way, that is taking into account economic and market conditions, and assuming that Poczta Polska is not the only institution providing postal services on a national scale. And we are not talking about the competitive tenders organized several years ago, but those already announced with the implementation date after the liberalization of the postal market. Ironically, the policy pursued by Poczta Polska should be a clear indication for public institutions and the an incentive to 'deliberate' and rational procurement activities. Providing the opportunity to private operators when announcing the tenders, they may count on more competitive offers and an extremely attractive pricing, even by 48% offered by Poczta Polska, which is confirmed by the abovementioned casus of KRUS and ZUS. Therefore, it is surprising that the public institutions do not use the chance to rationally manage their financial resources that can be ‘materialized” in such a simple way”.
The liberalization of the postal market was expected to bring tangible benefits to individual and mass customers as well as and the public institutions that send hundreds of thousands of letters a year. Meanwhile, the prices of Poczta Polska, which will be the monopolist at least for the next three years, hit the millions of individual customers and those representing the public sector, financed mainly by the state budget. The loss of the public institutions estimated according to the new price list of Poczta Polska and its practices used in public procurements can reach up to 400-500m PLN per year.
„All activities currently taking place on the Polish postal market are not only contrary to the European idea of liberalization of the sector, but also against Community Law.to make matters worse, the monopolistic and abusive policy of Poczta Polska, carried out on the basis of an unjustified privilege of VAT exemption on certain contract services is implemented with an approval of the legislator and postal market regulator. This outrageous situation, which clearly undermines the image of the Polish in the international arena. Therefore, we cannot meet it with no response”, says Rafał Brzoska.
Contrary to the anti-consumer policy of Poczta Polska, the mass senders using InPost services will benefit after January 1, 2013. This shall be result of two factors: reduction of the preparation of correspondence and elimination the need of separate packing and sorting letters weighing less than 50g. mass production of correspondence is a complicated process, and time reduction means shorter deadlines for money, orders and contracts. In turn, individual customers may expect lower prices offered by the largest independent operator comparing to the new price list of Poczta Polska.
InPost - Modern Post
InPost is a nationwide, independent postal operator, the most serious market competitor of the Poczta Polska, operating in the postal and courier market since 2006. The company - with its innovative approach to business, broad product offering and technological innovation - strengthens its position in the booming e-commerce market. The share of customized services to the company's revenue will be at least 30% in the next few years.
Apart form the traditional postal services, InPost flagship services are:
• Paczkomaty 24/7 – the most innovative postal service in Poland that enables sending and collecting parcels 7 days a week, 24 hours a day, no queues, and at convenient locations.
• Power Post (hybrid mail) – a comprehensive service combining the functionality of e-mail and qualities of traditional printing and postal services, allowing sending of letters in print without leaving your home or office
• Outsourcing of e-documents, including e-invoices
InPost development plans:
• Increase the shares in the postal and courier services market to 22% by the end of 20123
• Regular increase of delivered letters accompanied by a decrease of traditional mail volume by about 5% per year
• Presence in 230 Poish cities using the network of 900 Customer Service Points; correspondence delivered by InPost is distributed in more than 7 thousand locations throughout the country. By the end of 2012, the Integer.pl Group plans to deliver the correspondence for individuals in 750 locations, and for institutional customers in 10000 ones
• Building a consistent leadership position in the e-commerce sector, including the development of easyPack by InPost service; By the end of 2012, the company plans to deploy 1000 easyPack machines, including 300 in Poland, 375 in the UK, 200 in Russia, 50 in Ukraine, and over 100 in Czech Republic and Slovakia.
• Further international expansion of easyPack by InPost; Launch of 16 thousand machine throughout Europe by the next 4 years
• Commercial start of the service based on automated postal terminals
• New strategic contracts, including the public and local government entities by InPost and InPost Finanse
• Development and customer acquisition of mobile payments and e-invoice services
More info can be found at: www.inpost.pl