Not only do the competitors get the last mile at below cost RM also deal with returns for free.
So, let's say a company called shittylink decided to collect a whole bunch of mail (the easy and profitable part) they then take the post to RM, who sort it and deliver it (the last mile) if the mail is marked undeliverable by the occupant and put back into a post box then it gets picked up sorted and returned not to shittylink, but the actual sender. In any normal B2B relationship the stuff would be dumped back on to shittylink as (in my opinion they are) the sender of the mail.
There would at least be some recompense for this sort of thing occurring.
I don't really understand where things which are national services get privatised in order to compete, I've not seen it work for anything.
Since British Telecom went has service improved? Not as far as I can tell, the service it once supplied has developed a new Delhi accent.
Same for electricity, gas and railways.
I suppose the counter argument could be the NHS, but I think that there's a certain amount of movement towards privatisation which has buggered that up too, people can choose which hospital they want to be treated at etc. The whole NHS database setup is likely to be a sweetener paid for by taxpayers companies wouldn't have to come along and do any administration work they could just charge for healthcare and make profits, ultimately "competition" in these sorts of things is an illusion, profits go up as a result of standards decreasing. For some reason there HAS to be constant growth of profits, the profits don't have to be consistent, they have to grow, otherwise you're losing money apparently, I never understood the maths there.
Competition on the railways? I know I won't travel from Cambridge to London to go to work, instead I'll go on a different network... doesn't really work.
Competition for RM? Nope, no such thing.