Can Canada Post survive a digital age?

Like a super spy who awakens from a long cryogenic slumber (sorry, we just re-watched Austin Powers), Canada Post needs help getting with the times. 

Driving the news: Canada Post is selling Innovapost, its in-house IT wing, to Deloitte for an undisclosed sum. The move comes as the national mail carrier looks to improve its digital operations and capabilities, and find some way to stop hemorrhaging cash. 

• In its most recent quarterly report, Canada Post reported a $290 million loss — over half of what it lost in all of 2022 — and a decline in revenue for parcel deliveries.
  
  
• Earlier this month, Canada Post also sold SCI Group, its logistics business, to Montréal-based company Metro Supply Chain.

Why it’s happening: As a Crown corporation, Canada Post has a mandate to deliver the mail to all Canadians and do so at affordable price points. This admirable objective is directly at odds with another mandate to be entirely self-sufficient — that is, able to turn a profit. 

• Private delivery and e-commerce services like Amazon have devoured market share over the years, severely hampering Canada Post’s ability to deliver on its goals.

Why it matters: You might not send many letters these days, but you do rely on Canada Post for stuff like important government documents and cards. Also, many hard-to-reach rural, remote, and Indigenous areas depend on Canada Post’s commitment to accessibility.

• On a more philosophical level, perhaps the survival of Canada Post matters just as a concept. What is a functioning republic if it can’t even provide a public mail service?  

What’s next: Canada Post is trying to diversify. The postal workers’ union has suggested expanding postal banking and providing check-in services for seniors. Other experts have suggested it partner with private firms to take care of the last leg of parcel deliveries.—QH