Canada Post Plans to End Home Deliveries Within 5 Years

 

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Canada Post Corp. is one of the many postal agencies facing future financial losses as people abandon traditional mail to electronic communication. However, there still is a need to post offices especially as online shopping sales are increasing. Governments realize to avoid the post office turning into a burden for customers and taxpayers, they must make some changes.

To solve this problem, Canada Post said it would convert all households to the community mailbox system over a five-year period. It will eliminate the mail delivery system in the next 5 years and cut its workforce by as many as 8,000 positions in an attempt to reverse annual losses that could hit 1 billion Canadian dollars (US$943 million) by the end of the decade. Currently a third of Canadians still receive home mail delivery, mostly in urban areas.

Changes taking place:
1. Canadian Post said it would raise the price of stamps by at least 35%, effective March 31, the biggest one-time increase since the early 1980s. Sending a first-class letter within Canada is set to surge to 85 Canadian cents from 63 Canadian cents.
2. The U.S. Postal Service recently raised the price of sending a first-class letter by 6%, or above the rate of inflation, and consolidated operations to deal with seven straight years of bottom-line losses, which hit $5 billion in fiscal 2013.
3. The U.K. government this year sold a 60% stake in its postal agency, the Royal Mail, following similar privatizations in Austria, Germany and the Netherlands. European policy makers have liberalized mail-delivery markets in an effort to encourage private-sector competition.

Via WSJ