Canada Post is failing at being a business and must be restructured

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Less and less mail, year after year, to more and more addresses, for less and less revenue. This is a terrible business model

A Canada Post mailbox sits under water near the flooded banks of the Ottawa River in Cumberland, Ont. on April 30, 2019.Ian Lee is an associate professor in the Sprott School of Business at Carleton University, and author of the Macdonald-Laurier Institute reportThis month, the chief executive finally – after years of evidence – stated Canada Post “faces larger unsustainable losses in the future” without major reforms.

everything informational. Yet, the number of delivery points has grown by three million addresses over the same period to 17.4 million addresses across Canada.This is a terrible business model that is – and will be – producing ever larger annual losses. The fastest way to reduce the cost of delivery is delivering both mail and packages to community mailboxes and package lockers. Delivery to the doorstep is 75 per cent more expensive than delivery to a community mailbox and is 118 per cent more expensive than delivery to an apartment building.

 

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