Gig Economy Undercutting Couriers
- Private courier companies face competition from gig contractors.
- Traditional couriers cost $40-$45/hour (truck, driver, fuel).
- Gig contractors cost $25/hour.
- Canada Post's costs are even higher at $65/hour, making them uncompetitive.
- E-commerce companies are switching to gig contractors due to lower costs.
Canada Post Future in Deliveries
- Canada Post needs to shift its focus from traditional mail to parcel and courier services.
- This includes delivering various items directly to homes, such as prescriptions, food, groceries, and other physical goods.
- This direct-to-home delivery model is crucial for Canada Post's future, especially with an aging population increasingly relying on such services.
- The term "parcel" should be understood broadly, encompassing anything physical delivered to a residence, not just traditional packages.
- This strategy represents a vital adaptation for Canada Post to remain relevant and profitable.