Commercial and Regulatory Aspects of Reverse Hybrid Mail

Driven by market opening and increased competition from electronic communication, postal operators have started extending their scope of business by offering hybrid mail services in addition to physical mail conveyance. This paper discusses commercial and regulatory aspects of reverse hybrid mail, i.e. the electronic delivery and archiving of physical mail messages. It argues that postal operators are well positioned to offer hybrid services due to their established brands and their reputation. The introduction of reverse hybrid mail is able to significantly reduce the cost of postal operations while at the same time fitting customers' needs better than traditional postal services. However, these effects rely on the assumption that a postal operator is actually allowed to introduce an electronic delivery system of letters to entire regions and to thereby partially substitute the physical delivery to the doorstep.Reverse hybrid mail, Regulation, Postal market, Substitution, Intermodal competition