Why Canada needs a postal service
Canada Post is a lifeline for many Canadians, businesses, organizations and communities in every corner of our vast country. We’re Canada’s delivery infrastructure, with an unrivalled network that reaches all 17.6 million residential and business addresses from coast to coast to coast.
Canada needs a postal service that is there for the entire country, especially those who need it most – small and midsize businesses and Canadians in rural and remote communities. At a time when punishing tariffs threaten our economy, Canadians and Canadian businesses need a delivery partner that’s on their side and offers affordable service. As privately owned delivery companies seek large volumes from global retailers and focus on urban centres, Canadian entrepreneurs and consumers need a partner that gives them choice and goes to every community. That partner is Canada Post.
Throughout our long history, we’ve been there to support our country by serving all Canadians, connecting communities and strengthening the national economy. It’s a long-standing duty that we’re proud of and one that still holds true today. We deliver essential goods and services to Canadians and open doors for businesses of all sizes. We’re the only delivery company with the people, network and commitment to deliver to all of Canada.
Ready to do our part for Team Canada
A national postal service isn’t just about delivering mail and parcels. It’s about connection, economic opportunity and prosperity. It’s about making sure Canadian businesses have a fighting chance at home and abroad, and that no Canadians get left behind.
The threat of tariffs and other trade uncertainty means Canadians are looking to rely on each other more than ever. They want to support Canadian companies and shop locally. Canada Post is ready to do its part. We’re proud to have a role in a Team Canada approach to respond to any sudden impacts to the Canadian economy.
In communities across the country, our employees proudly deliver for Canada using a national infrastructure built over the past century for the benefit of all Canadians. We have the largest retail network in the country, with more than 5,700 post offices – over half of them in rural and remote areas that are not well served by many other carriers. We’re built to deliver to all Canadians. We’re a wholly Canadian-owned and managed company, whereas most of our major competitors are foreign-owned and based.
A national delivery partner that puts Canadians first
We understand the negative impacts that our recent labour disruption had on Canadians, and we’re working hard to ensure we’re there for the entire country now and in the future. While the disruption in service was unfortunate, it reinforced that a strong, national postal service is essential for Canadian prosperity. We heard firsthand about how we’re essential for small businesses; rural, remote and Indigenous communities; charities; seniors; and vulnerable Canadians.
“… Canada Post Corporation is viewed as a critically important partner and channel by retailers. This is true [among other things] with respect to parcel pick-up and delivery, delivery of marketing materials and letter mail, provision of PO Boxes, and business solutions. Simply stated, the cessation or serious interruption of operations by Canada Post is viewed as a seismic event by retailers and our customers.”
– Retail Council of Canada (submission to Industrial Inquiry Commission)
As the country faces new pressures and economic uncertainty outside its control, Canadians and Canadian businesses need a delivery provider that will put their interests first and deliver everywhere – not just where it’s most profitable. Canada Post is on their side.
Supporting Canadian businesses during uncertain economic times
Small businesses are the backbone of our economy, driving innovation, entrepreneurship and prosperity in communities across Canada. Yet they face enormous challenges competing against multinational retail giants and dealing with great uncertainty over the threat of tariffs. Canada Post is a national equalizer for small businesses, especially as they look to buy and sell within Canada. We open their sales to every doorstep and help level the playing field so they can compete:
- We support almost half a million small businesses in Canada.
- A majority of our small business customers are micro-businesses with less than $1 million in revenue and fewer than 10 employees.
- More than 20 per cent of our small business customers are in rural Canada.
- Almost 60 per cent of small business customers transact at one of our retail outlets.
A reliable, more affordable delivery partner
A national postal system is critical to ensuring small businesses have a reliable, more affordable delivery partner to reach customers at home and abroad. It also acts as a shield against tariffs by reducing barriers to internal trade and supporting domestic supply chains.
“Canada Post’s existence ensures that SMEs (small and medium-sized enterprises) across the country can access mail and parcel services. Its competitive prices ensure that mail services are accessible to most. Other providers… are generally more expensive and don’t cover all regions of the country themselves.”
– Canadian Federation of Independent Business, which represents more than 100,000 Canadian SMEs (submission to Industrial Inquiry Commission)
At a time when Canadians increasingly want to shop locally, our direct mail business also supports Canadian merchants. Direct mail – such as coupons and flyers – puts a company’s message, offer or promotion directly into the hands of prospective customers and brings people in the doors of local businesses and to their websites.
As private delivery companies chase high-volume contracts with global retailers for profit, Canada Post stands with Canadian small businesses. We aim to be their trusted partner during uncertain times – made in Canada, for Canadians. Entrepreneurs in our country need this choice when it comes to their ecommerce delivery provider.
A lifeline for rural, remote and Indigenous communities
Canada Post provides all communities – rural, remote, Indigenous and urban – with affordable, reliable services when and where they need them. We’re a lifeline to several parts of the country and often the only delivery provider for Canadians in rural, remote and Indigenous communities. We’re proud to serve Canadians and businesses no matter where they’re located, providing them access to commerce and customers across the country and around the world.
“Canada Post serves as our primary and most affordable shipping option, especially given our remote location… Unlike businesses in urban centres, we have no alternative shipping providers that offer comparable affordability or reach. Ensuring reliable and uninterrupted service is critical for us and other businesses in rural and remote areas.”
– Bean North Coffee Roasting Co. Ltd., Whitehorse (submission to Industrial Inquiry Commission)
While many privately owned carriers focus on urban centres, Canada Post ensures every community has access to critical goods, medical supplies, ecommerce merchants and government services through the mail – regardless of distance.
Rural, remote and northern communities, with their lower population densities and distance from large urban centres, tend to be viewed as costly from a delivery perspective. We are proud to deliver to remote communities that are only accessible by air for a large portion of the year:
- We serve nearly 150 remote and northern communities that can only be reached by air, with more than 310 flights per week through contracted air service providers.
- In many parts of the country, we deliver a significantly higher proportion of parcels to rural and remote areas.
- Many large delivery companies rely on Canada Post to make their last-mile deliveries in these smaller communities.
We have more than 310 flights per week to northern and remote communities through contracted air service providers.
The financial and structural challenges threatening Canada Post also pose a significant threat to rural, remote and Indigenous communities. A strong and sustainable postal service is needed to continue to deliver for them. Canada Post must have the flexibility to evolve, ensuring it remains a trusted, reliable and affordable partner for those who depend on it most.
An essential partner for charities
Our national network also makes a difference in communities across the country by supporting those who help and support others. That’s because Canada Post is a critical vehicle for charities, big and small, to connect directly with supporters and solicit vital donations.
Supporting the places we call home
Canada Post is one of the country’s largest employers. Our more than 62,000 employees – including over 17,000 in rural Canada – contribute to the communities where they live and work. We provide good-paying jobs with benefits, built around a culture where safety is our highest priority.
Conclusion
Canada Post is built to serve the entire country and is proud to do so. But the postal service faces existential challenges that limit its ability to evolve and compete. The status quo has led Canada Post to the verge of financial insolvency.
Urgent changes are needed to modernize and preserve the postal service. Otherwise, this important publicly owned national infrastructure will struggle to serve the entire country, especially those who need it most – small and midsize businesses as well as Canadians in rural and remote communities.
The continued decline in letter mail, fierce competition in the post-pandemic delivery landscape, and outdated operating, regulatory and policy parameters are threatening the future of the postal system. Since 2018, Canada Post has lost more than $3.8 billion before tax. Without significant changes, larger and unsustainable losses are forecast in future years.
Much of the company’s current operating, regulatory and policy framework was put in place decades ago, when mail was its primary source of revenue. However, letter mail volumes and revenue have been steadily declining for almost two decades. In 2006, the year Canada hit peak mail volumes, we delivered almost 5.5 billion letters. In 2024, we delivered two billion letters – and that erosion will continue.
Today, parcel delivery represents approximately half of Canada Post’s business, and with the Canadian ecommerce market expected to double over the next decade, it’s the foundation for the Corporation’s future. Canada Post needs flexibility and autonomy to compete in today’s ecommerce delivery market and to continue to serve all Canadians how and where they want.
Doing so requires broader reforms to Canada Post’s delivery model, collective agreements, and its regulatory and policy framework, while ensuring the appropriate checks and balances are in place. A modern Canada Post will be able to continue serving the changing needs of Canadians and Canadian businesses – and return the postal service to financial sustainability, without burdening taxpayers.