Canada Post Corporation—trading as Canada Post—is a Crown corporation that functions as Canada's primary postal operator. The company's annual revenue reached over 10.1 billion Canadian dollars in 2021 (approximately 7.9 billion U.S. dollars at the December 31, 2021 exchange rate of one Canadian dollar equals 0.78 U.S. dollars). Over 36 percent of Canada Post's revenues that year came from ist parcel delivery activities, compared to just under 25 percent attributed to transaction mail. Canada Post Corporation was the parent company of two of Canada's leading parcel shipping providers, cementing its position as the country's primary service provider for e-commerce.
The Canadian Postal Leader
Canada Post and Purolator were the first and third parcel shipping providers in Canada in 2020, holding 34 percent of the market together. The Canada Post Corporation has over 90 percent of the Purolator shares and generated 25.4 percent of its annual revenue from the parcel shipping company. The corporation also attributes three percent of its revenue to SCI, a third-party logistics company. The Canadian third-party logistics sector (3PL) amounted to 15.7 billion U.S. dollars in gross income in 2020 and was the twelfth largest 3PL industry worldwide.While Canada Post's revenue grew year-over-year in 2021, the distributed parcel volume dropped by just over seven percent, down to 361 million units in 2021. In contrast, mail volume declined during the COVID-19 pandemic but started to recover in 2021. Despite its position as a Canadian market leader, the group recorded a net loss in 2021. The corporation's operating costs rose to 10.3 billion Canadian dollars that year (around eight billion U.S. dollars), 196 million Canadian dollars over Canada Post's 2021 revenue.
Canada Post's Influence in North America
The Canada Post Group's leading position in the Canadian market is reflected in the North American market. Purolator was the third-leading courier carrier in the region in 2021, behind its U.S. competitors, FedEx and United Parcel Service (UPS). The U.S. companies were far ahead, with a difference in revenue of over 57.7 billion U.S. dollars between Purolator and second-in-the-ranking UPS. UPS was also the Canada Post Corporation's main competitor in the Canadian market, holding 15 percent of the 2020 market.Part of UPS and FedEx's success is due to the United States Postal Service (USPS). In 2021, FedEx was USPS's leading supplier, receiving nearly 2.2 billion U.S. dollars from the U.S. Mail. UPS also ranked among the top 10 suppliers that year, cementing its position in the U.S. and North American markets.
