Despite an increase in e-commerce, Australia Post is declining

Australia Post’s CEO, Paul Graham, has warned that the increasing shift towards digital commerce in the country will not be enough to save its letter delivery business, which is at risk due to declining volumes. Despite delivering 500 million parcels worth $500 million in 2022, the business will deliver a loss this financial year, following a $189 million half-year loss. Graham said that the current performance standards issued under the 1989 Australian Postal Corporation Act are no longer fit for purpose, and that a change is needed for the business to remain viable and self-funded. To recover foot traffic in regional post offices, Australia Post is trialling a new model, the community hub, which provides local businesses with a retail space within the post office and features such as parcel lockers. The organization is also implementing the Post26 strategy, which involves maintaining high performance in its e-commerce business, creating market-leading digital experiences, and simplifying its products and services to streamline operations and systems. Graham has requested parliamentarians to consider changes to support the viability of the business in the national interest.