Canada Post is at a “critical juncture” as it grapples with unsustainable finances and increasing competition from e-commerce platforms, according to the organization’s board chair, André Hudon. Speaking at the company’s annual general meeting, Hudon emphasized the urgent need for significant changes to preserve Canada Post’s nationwide delivery network, warning that without action, the Crown corporation could face a fate similar to that of Blockbuster.
The rise of online shopping during the COVID-19 pandemic has reshaped the parcel delivery market, leaving Canada Post struggling to keep up with more agile, tech-savvy competitors. Despite efforts to cut costs and focus on core priorities, the company has faced substantial financial losses, with last year’s deficit reaching $748 million—one of the largest in its history.
Canada Post has seen a drastic decline in its traditional letter mail service, once its main revenue source, and its share of the parcel delivery market has halved since 2019. The company is also hindered by an outdated operational model and its inability to offer weekend deliveries, unlike its competitors.
President and CEO Doug Ettinger highlighted the need for more operational flexibility and regulatory support to help Canada Post adapt to the fast-paced parcel delivery market. The company is currently awaiting approval of a new corporate plan, which aims to guide it towards financial self-sustainability by 2028.
