Canada Post reports $153M loss in 2019 amid rising parcels competition

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OTTAWA — Canada Post says it lost $153 million before tax last year as intense e-commerce competition slowed growth at its parcels business and an ongoing shift toward online communication prompted mail operation declines.

The Crown corporation says processing and delivering packages demands more technology, real estate, vehicles and time interacting with customers than handling letters, a burden that weighs on profits as tech giants such as Amazon expand their reach.

Canada Post says the number of addresses receiving daily mail and parcel service climbed by 168,000 in 2019, but that residents and businesses increasingly chat, advertise and do business digitally.

Parcels revenue climbed by $232 million last year, topping $2.7 billion to exceed revenue from letters, bills and statements for the first time.

Revenue from that “transaction mail,” sometimes known as snail mail, dropped by $69 million or 2.5 per cent year over year, with volumes falling by more 192 million pieces or 6.4 per cent.

The Canada Post Group of Companies, which owns the vast majority of the profitable Purolator Inc., is reporting a loss of $23 million before taxes for 2019, compared with a loss of $118 million 2018.

Canada Post says the COVID-19 pandemic had no impact on the its business last year, but has the potential to disrupt its operations in 2020 and beyond.

36 COMMENTS

  1. Try a different model.
    Take a look at USPS in the States.
    Who measures packages to the centimetre anymore. One small parcel within Canada is like $100 and takes 3 weeks, my parcel takes a better and longer trip sightseeing thru Canada then I ever could.
    I’ll never understand how Canada post works, they can likely look at themselves to blame. I avoid at all costs except domestic mail.

    Dumbest process I’ve ever seen.
    If I could send all mail thru USPS I would. Their process is SPOT ON. Take a note Canada post.

  2. While most of you are sitting at home complaining maybe you should slap on a uniform and follow us Canada Post employees that you so love bashing.Don’t know about your world but in mine its like packing a transport full of parcels and mail in a Kia Soul,do it everyday,with a smile on my face even when I’m getting yelled at because your parcel is not in my vehicle.Look out and smile at us for a change,we are scared ,but we are out there.

    • Governments and a powerful union are running this into the ground. That is an absolutely astonishing loss.

      It is time to consider the fact that daily mail service hasn’t been needed for probably two decades. Parcel and courier service, sure, but no one’s life would change if mail delivery was, say, weekly.

  3. Canada Post is knowing and willingly taking its customers money and failing to provide the service purchased, they say they can’t provide a guaranteed delivery time yet they still charge and provide a guaranteed delivery time. This is called fraud!

  4. If Canada post begins servicing Canadians who still use the post office maybe they would see profit again. Delivering amazon products on time is great but ignoring the need for domestic mail delivery on time will cost Canada post dearly

    • Ivana Filice when it costs just a few cents more and you can have your letter/correspondence delivered across town or to another town within hours, that’s the rabbit to catch. Unfortunately CP just doesn’t seem to have the margin to fulfill the customer’s demands in a quickly, timely and consistent fashion without passing that expense onto the customer, again the return on investment for the customer is just too much in way of time, expense and speediness of delivery.
      They just have too many balls coming in with no one to kick them to the outfield.

  5. Some of my parcels have taken 2-3 weeks to arrive when they shipped Express. I have a business to run and am having trouble getting supplies in a decent time. A week I can manage but not when something from May 8th is still in Missisauga. The only response I ever received was that they can not guarantee delivery standard dates due to increased activity during Covid-19

    • Brad Michael you are right Brad,
      before COVID-19, Canada Post was just as incompetent, slower then molasses in January and expensive as hell.
      So Canada Post’s present non-commitment, slow service to customers has not been affected by COVID-19, slow service and incompetence has been there long before and will there long after there is no more COVID-19.

  6. Right now they’re sending back a receiver I had sent from Scarborough and it was returned because they’re trying to verify my address but Canada Post was here the day before with a different item

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