Pass the parcel: Australia Post urged to ease dominance

Australia Post, the nation's largest parcel delivery service, has been urged by industry representatives to allow other carriers to provide parcel collection and return services at post offices. The Australian Parcels Industry Forum, representing FedEx and Team Global Express, claims the current contracts prevent independently-owned post offices from offering these services.

Australia Post holds a dominant 70% share of the national e-commerce parcel market, with up to 95% in regional areas. The forum argues this market concentration stifles service improvements and leaves retailers dissatisfied with the slow, expensive, or unavailable delivery options. Consumers in regions like Queensland's Darling Downs have fewer parcel pickup locations than retailers using alternative carriers, creating significant inconvenience.

The forum suggests opening up the network to competitors would generate substantial economic benefits, including $1.5 billion over ten years, 1,000 regional jobs, and cheaper, faster delivery options. While Australia Post maintains its mandate to provide national postal services, it must also satisfy shareholder expectations, creating tension as its letters business declines.