Canada Post reported a pre-tax loss of $315 million in the third quarter, up from a $290 million loss in the same period last year, largely due to a loss in the increasingly competitive e-commerce delivery market and the ongoing impact of strikes.<\/p>\n
Canada Post said its parcel delivery market share plunged to 29% last year, down from 62% before COVID-19. The company has been pursuing a strategy to increase revenue through e-commerce delivery as demand for letter mail gradually declines, but it is struggling with increased competition in this market.<\/p>\n
Canada Post said it saw a decrease of 6 million parcels and a decrease in letter mail volume, but it also saw a slight increase in revenue due to higher postage prices. However, it explained that overall, it continued to lose money.<\/p>\n
\u201cE-commerce companies, especially large delivery companies such as Amazon, have been eroding Canada Post\u2019s market share by increasing their next-day delivery,\u201d Canada Post said. The strike has also had a negative impact on the company\u2019s performance. The nationwide strike that began on November 15th caused more than 55,000 employees to stop working, significantly delaying delivery services. This caused a week-long halt to regular deliveries, except for some critical government services and cheques for beneficiaries.<\/p>\n
The main reasons for the strike include wage increases, working conditions, and contract worker issues, which are still not being resolved at the negotiating table. Alternative delivery companies such as Purolator and FedEx are seeing an increase in volume due to the Canada Post strike. Purolator said it is handling more customer requests as it responds to increased demand for alternative delivery services.<\/p>\n
Meanwhile, smaller businesses are having trouble delivering due to the Canada Post strike. Companies such as Sheertex are experiencing a surge in shipping fees and are notifying customers that additional charges may apply.<\/p>\n
Small businesses are looking for alternative options to provide customers with faster and more efficient delivery methods, but they are still struggling. Smaller stores are having a hard time fulfilling online orders and are warning customers in advance about delivery delays.<\/p>\n
The loss reflects the current situation of Canada Post, which has <b>recorded seven consecutive years. Canada Post has recorded losses of more than $3 billion over the past five years due to a sharp decline in letter mail volumes and increased competition in the parcel market.<\/p>\n
In addition, Canada Post is discussing with unions to suggest measures such as weekend work to meet the demand for next-generation delivery, but there is still a lack of specific solutions for these.<\/p>\n","protected":false},"excerpt":{"rendered":"