Home mail delivery will be unviable in the near future unless Australia Post reinvents itself to cover the billions it is losing, an independent report has warned.
In a lengthy report, thinktank the McKell Institute says Australians may have to commute to communal neighbourhood mailboxes, as is planned for Canada by 2018.
If the situation was to deteriorate so much that household delivery was scrapped, it would likely devastate direct mail as it relies on consumers bringing the advertising into their home with the mail.
[Related: More Australia Post news]
The report’s authors say planned price rises and service cuts will not be enough to save the embattled monopoly mail carrier and it must drastically broaden its services to stay in business.
“Australia cannot afford to go down the Canadian path, where mail delivery to the home has now been abolished,” the report says.
“The solution to the financial problems plaguing Australia Post will not be found by closing outlets and shedding jobs. Instead, it should leverage its brand and skilled workforce to deliver new products and services to our community.”
McKell instead advocates using its more than 4000 licence postal offices (LPOs) to provide a raft of additional services such as paying bills, identity services and other functions in cooperation with government agencies.
Agencies Post could do services for include the ATO, Centrelink, the DVA, Medicare, Electoral Commissions, motor vehicle authorities, state-owned utilities, and local government.
[Related: More direct mail news]
The report also suggests using Post’s logistics capability as an outsourcing solution for ecommerce companies, and points to the success of SwissPost’s venture into electronic medical records, making it one of the biggest IT employers in Switzerland.
Australia Post chief executive Ahmed Fahour has made some steps in this direction, pushing for LPOs to provide more passport services and targeting $30bn worth of Medicare services.
The mail carrier has long affirmed it will maintain its obligation to deliver to 98 per cent of locations five days a week, but McKell says the community service obligations should be reviewed for the first time in 16 years, though it does not say what changes should be made.
Australia Post lost $500m on mail in the past year, making it $1.5bn in the past five years, with a $6.6bn shortfall expected in the next decade if changes are not made.
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.
Sign up to the Sprinter newsletter