Sendle: Australia Post needs to operate profitably in a more open, competitive market

Sendle has provided a submission to the Australian Government’s Postal Services Modernisation discussion paper and consultation process to help inform the modernisation and future direction of Australia Post as a public enterprise. 

Excerpts from Sendle’s submission below: ” We appreciate the drivers behind the review to ensure that postal and parcel services in Australia meet the needs of the Australian community both now and into the future.

“Sendle started in 2014 in Australia with an ambitious vision to level the playing field for small businesses through shipping that’s good for the world. It is  Australia’s first 100% carbon neutral delivery service, and also the nation’s first technology B Corp.

“Small businesses are the heart of our economy and the soul of our community. There are over 2.5 million small businesses in Australia today, making small business Australia’s biggest employer, and every day they provide essential products and services to millions of Australians around the country. It is therefore a national priority to provide them with the modern infrastructure and tools they need to deliver and grow.

However, the entrenched functional monopoly that Australia Post holds over Australia’s post and parcel delivery market has stifled competition and innovation, and led to less choice for small businesses and consumers. For more than 200 years, Australia Post has effectively functioned as a gatekeeper; cutting out competing delivery companies and imposing high and varied fees on small business sellers. Australia Post is even encroaching on small business sellers by launching competing products, for example its gift hampers.

If Australia Post as it is currently run – with its significant advantages as a legislated letter monopoly and as the largest parcel delivery operator in the country – cannot compete profitably and fairly, then the rationale for enforcing the de facto monopoly falls away. For Australia Post to function as efficiently as possible and to serve the needs of all Australians, it needs to operate profitably in a more open, competitive market.

This submission explores the opportunity of opening up the vast national infrastructure and network of Australia Post, particularly in rural and regional areas, to private enterprise. Not only are there economic benefits to be realised by Australia Post, but it will also lead to more customised delivery solutions and innovations, and ultimately a better and fairer experience for Australian businesses and consumers.

This submission presents three approaches for opening up Australia Post:

• Opening up its PO box network

• Opening up its national delivery infrastructure as a platform for enterprises

• Opening up via worksharing with third parties

To read the full submission see: https://blog.sendle.com/opening-up-australia-post