“Business as usual” for Digital Post Australia following closure of Zumbox

Electronic postal mail service Digital Post Australia has said it is “business as usual” despite the closure of one of the two companies behind it. The private sector service competing against Australia Post in the attempt to offer Australians a viable secure digital alternative to paper-based letter mail was a joint venture between financial communications firm Computershare and US digital mail provider Zumbox.

However, Los Angeles-based Zumbox informed its US account holders earlier this month that it will close after five years of business. The company said the “time and cost” of delivering its digital mail vision were “more than the market is prepared to invest”.

Last night Digital Post Australia told Post&Parcel that it will be operating as normal, aware of the plan for Zumbox to close.

DPA chairman David Hynes said: “Zumbox’s announcement does not affect our current service to our customers and users. It is business as usual for DPA.

“DPA’s system is licensed and hosted in Australia and we will continue to utilise our customised software and platform.”

DPA

Digital Post Australia was originally founded in early 2012 as a joint venture between three companies, with international marketing and communications company Salmat holding a 40% stake to Computershare’s 40% share and Zumbox’s 20% share. The company’s digital mail service was launched in March 2013.

The business works with transactional mailers producing and mailing items like bills and statements, allowing consumers to have this mail diverted to an electronic channel for reception in their free digital mailbox.

Salmat pulled out of the venture after it was itself acquired by Fuji Xerox Document Management Solutions in October 2012, selling its stake in the venture to Computershare.

Computershare, which held an 80% stake in Digital Post Australia prior to the closure of Zumbox, said last night that it was also aware of its partner’s demise.

The company confirmed that the DPA service continues to operate from its existing infrastructure.

Scott Cameron, the group regional director Australia & New Zealand, told Post&Parcel in a statement: “Computershare is aware that US-based Zumbox Inc. has announced it is not able to continue business. We can confirm DPA has on-going access to the live system and standard legal protections to secure access moving forward.”

Australian market

Digital Post Australia competes within the Australian market against Australia Post’s MyPost Digital Mailbox, which is one of the postal service’s priority projects at the moment as its physical letter volumes decline.

DPA currently states that it has nearly 1,000 companies now making their communications available through its digital mailbox service. Many of these electronic mailers are listed companies delivering their share registry communications to shareholders, since parent Computershare is Australia’s largest share registry.

The company has been working recently to push the Australian government for new regulations to open up the use of electronic communications for more businesses, cutting red tape requiring certain businesses to use the physical mail for communications.

In December, DPA won a trademark dispute brought by Australia Post that had suggested its company name was too similar to Australia Post’s.