Front Burner Is Canada Post doomed?
10 snips
Dec 16, 2024 Ian Lee, an associate professor at the Sprott School of Business, shares his insights on the ongoing turmoil at Canada Post amid striking workers. He discusses the crown corporation's dire financial situation and the threat posed by declining letter volumes and gig economy competition. Lee suggests potential shifts towards parcel delivery and even postal banking as strategies for adaptation. The conversation dives into how Canada Post can meet the demands of an aging population and the pressing need for revenue generation and improved worker conditions.
AI Snips
Chapters
Transcript
Episode notes
Canada Post's Decline
- Canada Post's core business, letter mail delivery, has declined by 70% since 2006.
- Their parcel delivery market share dropped by 50% in four years.
Gig Economy Undercutting Couriers
- Gig workers' lower operating costs ($25/hour) undercut Canada Post ($65/hour) and private couriers ($40-45/hour).
- E-commerce companies are switching to gig workers due to these cost advantages.
Gig Worker Wages
- Jamie Poisson questions if gig workers make minimum wage after vehicle costs.
- Ian Lee hasn't analyzed that data but emphasizes Canada Post's declining urban relevance.