Australia Post faces stiffer parcels competition if Toll Group is sold

Australia Post faces stiffer parcels competition if Toll Group is sold

Japan Post’s takeover of the Australian logistics and express giant Toll Group has “massive implications” for Australia Post and its parcels business. That’s according to the trade association for licensed post office operators in Australia, the Post Office Agents Association Ltd (POAAL).

Japan Post’s $5bn USD offer for Melbourne-based Toll Group was unanimously recommended by the Toll board, according to yesterday’s announcement. The acquisition requires 75% shareholder approval and could be confirmed by early June.

It would swell Japan Post’s revenue by 30% and take the state-owned postal operator global overnight.

As well as a large global logistics business, notably serving the energy industry, Toll Group has growing ambitions for the e-commerce delivery market in the Asia Pacific, and in Australia itself.

POAAL said the company will bring more competition for Australia Post in that area, bringing together Toll’s end-to-end delivery network, its network of Australian news agencies providing parcel shop services, its Australian and Asian parcels networks and Japan Post’s own network.

The association said the Toll Group takeover will put pressure on Australia Post’s parcels business, a major driver of the state-owned company’s profitability.

Competition

“This deal has the potential to increase competition in the Australian domestic
parcels market and in the international parcels market. Competition is growing fierce in the B2C parcels market, including e-commerce fulfilment,” said POAAL director Bob Chizzoniti.

“POAAL has repeatedly urged Australia Post to focus its sales efforts on finding new
parcels business instead of cannibalising its existing business.”

Toll Group launched its Toll Consumer Delivery unit back in 2012 to focus on grabbing market share in the Australian e-commerce delivery business. The company developed a network of parcel shops working with newsagents, initially in the state of Victoria before expanding nationwide.

It has also deployed parcel locker terminals to provide additional alternative collection points for e-commerce deliveries.

Last year Toll Group said it wanted to step up its assault on the e-commerce market, as it builds some of the largest parcel sorting facilities in Australia outside Sydney and Melbourne as well as investing significantly in its last mile network.

Toll Group managing director Brian Kruger said back in August 2014 that his aim was to take on the near-monopoly position of Australia Post in e-commerce delivery, and that Toll Group was getting over the key advantage Australia Post had over it — its last mile infrastructure.

Relevant Directory Listings

Listing image

SwipBox

Focus on the user experience SwipBox is focused on creating the world’s best user experience for delivering and picking up parcels using parcel lockers. Through a combination of intuitive network management software and hassle-free, app-operated parcel lockers, SwipBox delivers maximum convenience to logistics providers, retailers […]

Find out more

Other Directory Listings

Advertisement

Advertisement

Advertisement

P&P Poll

Loading

What’s the future of the postal USO?

Thank you for voting
You have already voted on this poll!
Please select an option!



MER Magazine


The Mail & Express Review (MER) Magazine is our quarterly print publication. Packed with original content and thought-provoking features, MER is a must-read for those who want the inside track on the industry.

 

News Archive

Pin It on Pinterest

Share This