Canada Post isn’t broken, but the rules are
Outdated regulations and unfair competition are holding back a service Canadians still depend on every day
News headlines tell Canadians that Canada Post is unsustainable, bleeding money and in need of deep cuts to survive. Those cuts include eliminating door-to-door delivery and closing selected post offices. But this ignores the fact that real solutions exist to strengthen this essential national service.
The economic challenges are real. Canadians are sending fewer letters than they did in 1981, when Canada Post became a Crown corporation and took on its universal service obligation to deliver mail, at no charge, to every household in Canada, no matter where they live.
Canada Post’s revenue model was built on that mandate. It included an exclusive privilege over mail delivery and the right to issue stamps. Until letter volumes began to decline about 20 years ago, this monopoly generated enough income to subsidize delivery to all addresses, including remote communities. But with parcel volumes now outpacing letters, that model is no longer sustainable. The result: persistent losses.
If parcel delivery is growing, why can’t Canada Post just compete? Because, unlike letter mail, parcel delivery is completely unregulated. Canada Post must serve every address, while private courier firms tend to prioritize the most profitable routes—mainly in urban and suburban areas. That’s not a level playing........
© Troy Media
