Australia Post to expand letter and parcel services
Australia Post has announced plans to extend its parcel and express services to include Saturday delivery, in response to customer demand. The company had already been providing six-day-a-week service during the Christmas period, but from later this year will make the offering all-year-round.
The firm is also opening its postal outlets six days a week.
And, the company is pushing its new Digital Mailbox, while also preparing to launch two-speed letter delivery services for residential customers, in the hopes of slowing the spiralling losses from its traditional letter business.
Australia Post said it soon faces the prospect of the annual losses from its traditional letter business surpassing the profits made from the other parts of the group, including its parcel services.
With letter volumes projected to decline by between 8 and 11% each year, Australia Post believes the letters business will lose $350m this year, and is headed towards a $1bn annual loss.
The Post made an overall Group profit of $312m in its last financial year thanks to parcels and express services, with the letters business losing $220m.
“Without change and reform to letter services, we do not have the ability to absorb this loss and could, for the first time since corporatisation, become a cost to the government and ultimately the taxpayer,” said Ahmed Fahour, the Australia Post CEO.
“We believe we need to change today, while we are strong, so that this transition is done in an orderly way and so we can protect the community’s equity in our business. If we wait another 12 months it might be too late as the large losses from letters will overwhelm the organisation.”
The new Saturday services will begin from the end of this year. Australia Post has already been expanding its parcel offering with the introduction of automated self-service parcel locker terminals which now feature in more than 160 locations.
Fahour said: “The extension of weekend trading is a direct response to customer demand. Our customers have told us that they would like to see more services from us and this is the next step in growing our offering to meet those expectations.”
Letter changes
Changes to household letter services will be introduced from 2 June 2015, and will mean that residential customers as well as business will be offered the choice between regular or priority delivery for letters.
Australia Post said the services would be similar to first class and second class services provided in New Zealand, the UK and the United States.
“Even though 95% of our mail is from businesses, corporates and government, we are pleased to be able to offer the same choice of speed to households in 2015,” Fahour said.
“Australia Post will be a world leader in its postal services, offering choice and convenience through regular, priority and express mail services, plus express post delivery and extended opening of stores on Saturdays adding to our increased service offering. Australia Post 24/7 Parcel Lockers and digital mailbox will ensure that all Australians and Australian businesses can remain connected and have access to deliveries all day, every day, over an entire year.”
