2024-05-05 20:16:18
Canada Post will have to make a big change in its operations in the next few years, as a new report shows losses of $748 million by 2023, or $200 million more than last year.
“It’s a necessary step,” journalist Marc-Antoine Le Moignan said on air. “Otherwise the losses could be even greater for the state-owned company.”
The state-owned company published its annual report last Friday.
We learn that close to 2.2 billion letters were sent in 2023. The system that delivered 5.5 billion letters in 2006 is therefore no longer adapted to today’s needs.
There is an increase in operating expenses of another $11 million, caused by labor costs and the increase in addresses served across the country.
An outdated model
In the report, Canada Post said it was determined to make the necessary change, increase competitiveness and invest to facilitate package delivery.
The state-owned company must constantly fight against increasingly strong competition in the parcel sector, especially against the giants: UPS, Amazon and FedEx.
It made a major transformation of its parcel service in 2019, and despite this change about 5 years ago and the increase in parcels delivered, a loss of $91 million was recorded for this service.
Less demand
Do people still use post offices, do they still buy stamps and envelopes? TVA Nouvelles put the question to the citizens.
“As a French woman, when I send packages abroad, I use Canada Post, yes of course,” replied a first passerby.
“It’s rare, it’s exceptional,” said a second.
One man explained: “Professionally, I use UPS services a lot. But personally, I think Canada Post is still a good solution and it’s still a local service that’s still available.”
“It is certain that we will see less use of it, but I do not think it will disappear because there are still people who send letters to each other, which we cannot do with Amazon”, emphasized a young woman to our journalist.
“I never go to the post office, I can do everything on the Internet now,” replied another man there. Is it outdated? “A little, yes,” he concludes.
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