Royal Mail PLC (LSE:RMG) has asked regulator Ofcom to re-evaluate its decision that post and parcel delivery firms can no longer track packages.
Under the Universal Service Obligation (USO) tracking was banned as it may damage competitive behaviour.
Ofcom also told all postal operators to simplify their complaints procedures and offer a better service to disabled customers from 2023.
The UK’s leading package deliverer has urged Ofcom to add tracking to first and second-class parcels to make sure customers get a minimum level of service.
"Tracking is no longer seen as an optional extra or a premium offer, it is a necessity," Royal Mail said in a statement.
It is obliged to deliver a minimum of 93% of first-class items within one working day and at least 98.5% of the second-class post within three working days.
Royal Mail has experienced some turbulent recent times, with higher competition, union disputes, striking employees and surging costs all eating away at profits.
Peel Hunt added that the review of postal regulation, of which the tracking was a part, covers the period 2022 to 2027.
No major changes have been announced, it said, and there may be frustration that any changes to the requirement to deliver letters 6 days per week, with a reduction to 5 days per week supporting further investment in parcels delivery above 5 days per week, fell outside the scope of this review.
"Ofcom has decided to maintain the current overall framework, including price caps on the basic universal services and quality of service standards, and will introduce new targeted consumer protections for disabled customers and to improve complaints handling.
"Royal Mail will be required to provide a view of the financial sustainability of the universal service over a longer period and to provide and publish a new five-year view of its efficiency expectations and to report against actual performance.
"We see this as slightly disappointing for Royal Mail," said the broker.
Shares fell 1.2% to 274.9p on the news.