The impact of increasing competition for non-contract parcels on postal prices and efficiency decisions
By Philippe De Donder, Frank Rodriguez & Soterios Soteri
Letter volumes in countries with advanced postal networks have been in decline for many years and generating increasing pressure on postal universal service providers (USPs) to seek new revenue streams and increase efficiency to meet their regulatory and financial obligations. The increase in online shopping over the past decade and associated increased demand for parcels has provided postal USPs with a much needed boost to counter balance some of the challenges they are confronting. However, as the parcel market expands and evolves to meet changes in consumer patterns this brings forward new threats as well as opportunities for USPs. For example, while competition in some parts of the parcels market is already quite intense, especially the domestic bulk contract segments within some European countries, USPs face the threat of increasing competition in the single piece or noncontract parcel segment, especially from competitors that may potentially be operating at the margin of regulatory requirements. In particular, private individuals and small businesses, both of whom have traditionally sent parcels via USP Post Office outlets, are being offered an increasing range of options to send them via other parcel operators using alternative acceptance points, such as local convenience stores, retail outlets and locker banks.
Featured News
CVS Health Explores Potential Breakup Amid Investor Pressure: Report
Oct 3, 2024 by
CPI
DirecTV Acquires Dish TV, Creating 20 Million-Subscriber Powerhouse
Oct 3, 2024 by
CPI
South Korea Fines Kakao Mobility $54.8 Million for Anti-Competitive Practices
Oct 3, 2024 by
CPI
Google Offers Settlement in India’s Antitrust Case Regarding Smart TVs
Oct 3, 2024 by
CPI
Attorney Challenges NCAA’s $2.78 Billion Settlement in Landmark Antitrust Cases
Oct 3, 2024 by
nhoch@pymnts.com
Antitrust Mix by CPI
Antitrust Chronicle® – Refusal to Deal
Sep 27, 2024 by
CPI
Antitrust’s Refusal-to-Deal Doctrine: The Emperor Has No Clothes
Sep 27, 2024 by
Erik Hovenkamp
Why All Antitrust Claims are Refusal to Deal Claims and What that Means for Policy
Sep 27, 2024 by
Ramsi Woodcock
The Aspen Misadventure
Sep 27, 2024 by
Roger Blair & Holly P. Stidham
Refusal to Deal in Antitrust Law: Evolving Jurisprudence and Business Justifications in the Align Technology Case
Sep 27, 2024 by
Timothy Hsieh