Losses Mount at Canada Post
CBJ — Crown corporation Canada Post lost $153 million — before tax — last year.
The primary reason for the financial decline is being blamed on increased e-commerce competition and the continued reduction in personal mail. More companies also continue to do business digitally, taking away the need to send a paper trail.
It’s estimated that Canada Post delivered more than 7.7 billion pieces of mail and parcels last year. But mail delivery has been moving more towards larger packages in an effort to compete with such tech giants as Amazon as well as courier companies such as UPS, FedEx and DHL.
“Parcels processing and delivery requires more technology, space in buildings and vehicles, and time interacting with customers, making it significantly more costly than sorting and delivering letters,” Canada Post said in a release.
Canada Post said its parcels revenue climbed by $232 million last year, topping $2.73 billion to exceed revenue from letters, bills and statements for the first time.
Canada Post owns the majority of courier company Purolator, which turned a before-tax tax profit of $152 million in 2019. However, that’s still a 5% decrease from 2018.