Canada Post faces critical juncture amid mounting losses
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Canada Post's board says the Crown corporation is at a "critical juncture," as it faces competition from private carriers, it's considering adding delivery on weekends.
Canada Post's board says the Crown corporation is at a "critical juncture," as it faces competition from private carriers, it's considering adding delivery on weekends.
Canada Post is at a tipping point, and it has been for some time, according to economics professor Moshe Lander.
"Those losses now run into the billions of dollars every single year," Lander said in an interview.
The postal service lost $748 million last year and has been reporting losses since 2018. In the last six years, its deficits have totalled $ 3 billion.
Its sizeable network of mail couriers servicing the whole country is just one factor bringing down the Crown corporation, Lander said.
"They now face competition in the 20th century with UPS, Purolator, CanPar and FedEx. They didn't necessarily exist in Canada before but even if they existed, they weren't necessarily trusted the way the Canada Post was," he noted.
He also points to declining mail volumes as another soar point, especially as Canadians increasingly pivot to online mail delivery.
