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Wednesday, December 11, 2013

Canada Post to end Door to Door delivery in Urban areas

Gelderman.ca real estate - fraser valley real estate mailboxesCanada Post has announced a new business plan to begin in 2014 which will see the end of door to door delivery in all Urban areas across Canada. Over the next five years door to door service will be replaced by community mailboxes - a move that will save close to 500 million dollars every year. Canada Post developed the plan, which also includes increasing stamp prices, in order to reach financial stability without taking taxpayer money.


An article in the Vancouver Province newspaper laid out the numbers:

$1 billion: The amount Canada Post was expected to lose every year by 2020 if it didn’t adopt a new business plan.

$400-500 million: The annual financial benefit from eliminating door-to-door delivery.

$160-200 million: The annual financial benefit from increasing stamp prices.

5,094,694: The number of Canadians who get mail delivered to their door and who instead will see community mailboxes built in their neighbourhoods over the next five years. Mail delivery will not change for 757,843 Canadians in rural areas.

$269: The annual per-address cost for door-to-door delivery, the most expensive form of mail delivery. The annual per-address cost of delivering mail to community mailboxes is less than half that, at just $117.

15,000: The number of Canada Post employees expected to retire or leave the company over the next five years. Canada Post says it expects it can cut labour costs through employee attrition and collective bargaining, not layoffs.

59: The price percentage increase of individual stamps from $0.63 to $1.

$0: The amount of taxpayer money being used to help Canada Post fight its way to financial sustainability.

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