Email, Texting and Online Bill Paying is doing to Canada Post what it did to the USPS

Posted by PITHOCRATES - January 19th, 2014

Week in Review

The United States Postal Service (USPS) is going broke.  Thanks to email, texting and online bill paying.  Making the USPS more and more irrelevant these days.  And it’s not just the USPS having this problem (see Ontario mother with sick child urges Canada Post to keep door-to-door delivery by The Canadian Press posted 1/13/2014 on City News Toronto).

An online petition urging Canada Post to reconsider its decision to end door-to-door delivery in urban centres has garnered more than 120,000 signatures…

Canada Post announced some dramatic changes to its operations last month, including plans to phase out the age-old tradition of home delivery in urban areas. The company said that without postal carriers travelling by foot, it would save a significant amount of money…

The petition — posted on the website change.org — draws attention to anyone in Canada who has limited mobility, such as the elderly or disabled, and the possibly dangerous effects this change could have on their lives…

Hamilton said that Canada Post is trying to maintain service to all Canadians but that they need to find innovative ways to do it in order to remain self-sufficient.

Canada Post had projected an annual loss of $1 billion dollars a year by 2020 if they were to continue with the door-to-door delivery.

Part of the reason why Canada can’t afford to keep urban delivery is because they have single-payer health care.  Which is pretty costly.  Especially with Canada having what all advanced economies have.  An aging population.  Which means more people are leaving the workforce and consuming taxpayer benefits than there are people entering the workforce paying taxes.  And with better health care people are living longer into retirement.  Which forces tax rates higher on the working (i.e., the young and healthy) to pay for those not working.

It is interesting that the same people, the young and healthy, are the ones destroying Canadian Post.  For they’re the ones emailing, texting and paying bills online.  Which means they will have to raise taxes further on the young and healthy to support the older generation.  Transferring more and more costs from the old to the young.  Which is what happens in a socialist country.  Generational theft.  Costs keep rising so people have smaller families.  Causing the population to age.  And requiring ever higher tax rates on those in the workforce to pay for the growing numbers who have left the workforce.

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The Cruel March of Technology now has the USPS in its Crosshairs

Posted by PITHOCRATES - August 3rd, 2013

Week in Review

The United States is not the only country trying to figure out what to do with a dated institution long past its prime that few people use these days.  Something that was a large part of our parents’ lives.  But becoming more and more meaningless to the younger generations.   The Postal Service (see Canada Post needs to reduce home delivery by Daniel Fontaine posted 7/31/2013 on Vancouver 24 hrs).

The reality today is tech-savvy Canadians are no longer enamoured with their postal service, nor do they rely upon it to operate their daily lives. Thanks to online banking, e-mail, scanners and texting, Canada Post and its costly, outdated service look ancient by comparison…

Today, door-to-door mail service in many rural or even less-populated urban areas is no longer an option. Canada Post abandoned the front-door policy in new subdivisions, instead favouring group mailboxes…

… would it really impact those getting home delivery if they received their mail only twice a week? I doubt it would make a whit of difference — except perhaps to the bottom line of Canada Post. Reducing home delivery means paying fewer postal workers and a more efficient operation…

But don’t expect the public-sector unions and a majority of home-delivery recipients to let daily mail service go without a fight, even if the business case no longer exists to maintain this costly level of service.

The United States Postal Service (USPS) has been on life-support for a long time.  First it was email.  Then ecommerce.  Then online bill paying.  Then texting.  With FedEx and UPS delivering the things we buy on line with our tablets and smartphones what’s left for the USPS?  Besides junk mail?  Even the Social Security Administration uses e-banking.  The volume of mail has fallen so far that they cannot raise stamp prices high enough to cover their operating costs and fund their pension plan.  Unless they can get people to mail a postcard for $57.  Or more.

There used to be video stores all over the place.  As renting videotapes was a booming business at one time.  But the same reasons that have made the USPS obsolete have made the video store obsolete.  There are still a few around.  But it is hard to compete with vending machines renting movies at the grocery store.  And watching them over the Internet.  Where they can charge less as they don’t have the costs of a brick and mortar store to pay for.  And this is the problem the USPS has.  There are less costly and faster alternatives available.  Why pay to mail a letter that will take days to travel to the recipient when you can email something for free that arrives seconds after sending?  Even the video stores don’t have competition that bad.

Remember receiving a telegram?  Probably not.  Something else that has long since fallen by the wayside.  The telephone put that to rest.  Today people can call with bad news.  They don’t have to send a telegram.  Putting a lot of telegram deliverers out of a job.  But life went on.

So perhaps it’s time to pull the plug on the USPS.  Or greatly reduce the service.  Maybe twice a week.  For let’s face it, nothing good comes in the mail these days anyway.  Bills, junk mail and jury duty summons.  Things we just won’t mind waiting an extra week to get.

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