Canada Post plans to raise stamp prices to reverse losses

Recently, Canada Post said that in order to reverse losses, it hopes to increase the price of mainly sold stamps by 25 cents (about 5.2 yuan for 1 Canadian dollar) to 1.24 Canadian dollars. If approved, the new stamp price will be implemented from January next year. It is expected to bring an additional 80 million Canadian dollars in revenue to the company in 2025.

Canada Post is a government-owned "crown corporation" and also the country's largest parcel delivery company. However, in recent years, it has faced severe financial pressure. Data shows that the pre-tax loss from 2018 to 2023 reached 3 billion Canadian dollars, of which the loss in 2023 was 748 million Canadian dollars. With the development of digital information, the number of letters in Canada has decreased significantly in the past nearly 20 years, from 5.5 billion in 2006 to 2.2 billion in 2023. But the number of addresses that need letter delivery has increased instead of decreased, leading to an increase in labor costs. At the same time, Canada Post has lost 50% of the market share because it failed to beat low-cost courier companies.

In fact, this is not the first time Canada Post has tried to save itself. At the beginning of this year, the company had already sold its IT and logistics departments to reduce labor costs and ease financial pressure. The measure of raising stamp prices this time aims to balance the rising service costs. Local media has warned that Canada Post has less than five years to reform and restructure, otherwise it will "disappear". Canada Post's decision has also attracted widespread attention from all sectors of society. People are concerned about whether it can successfully reverse losses through price increases and what impact this measure will have on postal services and users. We will continue to pay attention to the follow-up development.