Canada Post to launch weekend parcel delivery by year’s end

Canada Post announced plans on Friday to begin offering weekend parcel delivery in three major cities later this year, as part of an effort to modernize its business model and capture more parcel business. This announcement comes after the resolution of a lengthy labor dispute in June, which restored customer confidence and contributed to a recovery in parcel business, reducing the company's pre-tax loss by a third.

The state-owned carrier also reported a 6.3% reduction in costs during the quarter due to improved operational productivity. However, the company is still facing challenges, with a $347.5 million loss in the first half of the year, compared to $323 million in the same period last year. While revenue grew 1.5% year over year to $1.1 billion, letter mail and mail revenues declined due to the rise of digital communication.

To address these issues, Canada Post is implementing operational efficiencies like flexible staffing and streamlining letter mail operations. The company is also working with communities to convert residential addresses to secure community mailboxes, aiming to centralize residential delivery as part of a broader transformation plan.

Despite losing $4.76 billion since 2018, management sees e-commerce as a growth opportunity and plans to expand home parcel pickup services, offer box-free returns, and improve next-day delivery in major cities, including Ottawa, Montreal, and Toronto.