Can the post office reinvent itself?


The humble post office is in trouble.  Consider the following:

1. Courier companies have usurped the business mail segment – which was an overcharged and/or under-serviced segment

2. Email has replaced letter writing, telegrams and greeting cards.  The younger generation sees no need to enter a post-office

3. Electronic banking has eaten into money transfers – a business which has scale benefits

4. Post-cards/inlands continue to be subsidised, in order to fulfill the social objective of the post office

5. Salaries are linked to government pay scales and cause the wage bill to rise year-over-year

6. Rental costs continue to rise

In effect, the post office has lost its most profitable customers and businesses, has had massive shrinkage in its volume business, continues to provide subsidies and has an increasing cost structure.  Ouch!

Can the p.o. reinvent itself?  It’s possible.  They have unrivaled reach, a large workforce, deep knowledge of customers and government support.  Powerful ingredients for any business.  We just need someone to start working on it!

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