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Canada Post

Facts on Canada Post

History of Canada Post

Canada Post, a crown corporation, functions primarily as the country’s postal and courier service provider; from shipping and delivering letter mails, parcels and packages domestic and international to providing advertising support for businesses through its Direct Marketing services. Aside from providing postal and courier services, Canada Post also operates stores selling variety of stamps and postal supplies.

Before it was renamed to Canada Post in the 1960s, it was originally called Royal Mail Canada as the name for the Post Office Department of the Canadian government founded in 1867. The Post Office was a pioneer in airmail delivery that started its regular air express services in 1928. In 1939, the daily cross-country airmail services started with a maximum of two days delivery date.

Until 1970s, the federal department started to experience major issues such as strikes and annual deficits that cumulatively amounted to $6oo million by 1981. Through this series of unfortunate events, the government agreed to give the post office independence to make it commercially feasible and competitive against the new private courier services.

The “Canada Post Corporation Act” was passed on October 1981; from the federal department into a Crown corporation, it was rebranded from ‘Royal Mail’ to ‘Canada Post Corporation’.  The legislation clearly stipulates that all Canadians, regardless of their geographic location will have the right to avail of basic postal services particularly mail delivery.

Issues of modernization and privatization have been discussed which could boost Canada Post’s efficiency and efficacy. Moya Greene, a former CP CEO, stated that years of under-investment resulted to low-quality services that greatly affected its financial performance.

On 2010, Canada Post launched Comparison Shopper allowing Canadians to find and compare products from over 500 stores within Canada and the U.S. Other features include price comparison, price history charts, store policy information, fees estimation, product reviews and shipping. As of 2012, the Comparison Shopper was terminated.

For 16 years, Canada Post was able to realize annual profits until 2011, CP reported a loss of $253 million before tax. In 2012, CP was able to gain a profit of $98 million before tax. In 2013, operating losses amounted to $269 million and in the second quarter of 2014, CP’s net profit reached $67 million.

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