On November 21st Canada Post reported a $129 million loss for it’s most recent quarter, as the company shrinks from the declining letter business. Along with this announcement, they disclosed issues with pension obligations pushing them upward to a 1 Billion dollar loss come midway through 2014.
Let’s face it the “letter” business is going out of business, as it should, mainly because of the majority of items mailed to my house makes me want to uppercut a small child. As well, my online bills arrive more timely than their physical counterparts. Mail services have not improved since 1921 BC.
The biggest problem of all, one shareholder: The government.
I really don’t know when I became a right-winged capitalist, but, in the case of mail post I am under the impression if the Government plans on doing nothing then they should relinquish themselves of being the only shareholder of said company.
Seeing that the government announced no plans to lend the corporation money to pay off debts, it appears they are completely content with doing nothing as if they do not have the power to act. If not lend money, why not produce legislation where Canadian companies must use “Canada Post” for online billing, or for submitting legally binding documents within Canada – in turn forcing Canada Post’s relatively decent online solution to be a source of significant income.
But that won’t happen. Governments are notoriously bad at web legislation:
- eHealth Ontario
- What’s that new one? TPP
- Bill C-30
Just to name a few…
Alternatively, Canada can go the way of the Brits and have the mail company go Public. This would produce a massive public investment in what would likely be a ridiculous initial public offering (this is a theme for IPOs these days) thus forcing the company to be more competitive, improving services, and getting out of the red.
Of course, there will be beheadings if the company in public interest continues to fail.
But… If a company goes down, it’s pleasant to see the reputation of a high paid CEO go down with it. YAY CAPITISM FTW.
Finally, I like to sum up by saying that the mail, parcel, home-delivery business should be treated more so like a tech company (with a huge workforce) rather than a simple delivery company. A company which employs such a work force can really exploit research and development of new products, new services to a similar capacity of some of the large parcel delivery companies out there do.
I find this essential more than ever coming into an age where 3d printing, manufacturer distribution, custom everything, and shop from your cell phone/computer are starting to mature. The opportunities Canada Post has needs to start being exploited, before, we loose our precious mail services.
Sidenote: Does anybody find it ridiculous that we still use separate mailboxes to receive mail vs. sending mail? They can save a significant amount of money if they just pick up the mail from where they deliver mail to… right?