Canada Post Reports $748 Million Loss in 2023 Amid Rising Parcel Delivery Competition

Canada Post, the Crown corporation responsible for postal services in Canada, announced a staggering financial loss of $748 million before tax for the year 2023.

The company highlighted the intensifying competition in the parcel delivery sector as a primary factor contributing to its financial challenges. With its market share dropping from 62% before the pandemic to 29% last year, Canada Post is facing significant pressure in the parcel delivery market.

Doug Ettinger, the Chief Executive Officer of Canada Post, emphasized the urgent need for the organization to revamp its existing business model to remain viable in the midst of changing market dynamics.

Over the years, Canada Post has experienced a drastic decline in the volume of letters delivered, witnessing a 60% drop since 2006. This decline in traditional mail services has further exacerbated the financial strain on the Crown corporation.

The financial report revealed that the $748 million loss in 2023 marked a 37% increase from the previous year’s loss of $548 million. Additionally, the total revenue for the year was reported at $6.9 billion, reflecting a 3.3% decrease compared to the previous year.

Within the Canada Post Group of Companies, the Purolator segment managed to earn $293 million, partially offsetting the losses incurred by the core postal services division.

Canada Post’s financial struggles underscore the need for strategic changes and innovations to adapt to the evolving landscape of the postal and parcel delivery industry.