“We cannot and should not sell services below cost,” says An Post CEO

“We cannot and should not sell services below cost,” says An Post CEO

At the Universal Postal Union (UPU) World CEO forum in Amsterdam yesterday, An Post CEO David McRedmond urged the UPU and national postal organisations to build on the success of last week’s special congress which reformed rates for delivering smaller e-commerce packets. 

“It is vital that postal operators receive cost-reflective payments at this critical point when the postal industry is moving from an old world of letters to a new world of e-commerce. We cannot and should not sell services below cost, and we should value our trusted brands, our great employees and our secure global network.”

McRedmond presented the ‘new customer’ for An Post: “Ciara, thirty-something, socially aware, and looking for flexible e-commerce and financial services”.

“The switch to provide advanced fintech services linked to e-Commerce requires significant technology investment. And the advanced delivery network for parcels requires investment in new sortation equipment and facilities, and the use of robotics and AI to be responsive to customer needs”.

He made two calls to action: 

  • Firstly, the UPU and national postal organisations should push on now to complete the reform of all postal tariffs reflecting improved services and investment.
  • And national postal services should look for responsible labour regulation to prevent the excesses of the gig economy which undermine quality employment, trusted brands and a reliable global network.

“This industry is worth fighting for to maintain global, ubiquitous services for all citizens which they can value and trust,” McRedmond concluded.

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