Efficient, Competitive and Better Service: Germany’s Post Office Model and Lessons for Canada

Adrian Vannahme, Crown Corporations, Publications, Uncategorized

 

Executive Summary
 
• The liberalization of the postal sector in Germany and the privatization of
Deutsche Post have translated into significant benefits for business and private customers in Germany, both in terms of price and service quality;
• The efficiency and competitiveness of Deutsche Post have increased substantially;
• The feared negative effects to universal service and working conditions have been averted;
• The privatization of Deutsche Post allowed the German government to sell off a struggling state-owned company and reduce public debt.
 
Introduction
Canada Post has long been criticized for slow delivery, long lineups at the post office and high prices—for business customers and consumers alike.  As Canada Post has little competition, there is no reason to believe that it can be pressured into improving service or prices. Using Germany’s postal sector as an example, this study illustrates how the liberalization of the postal market and the privatization of this monopoly led to vast improvements in terms of efficiency, services, national and international competitiveness and customer prices.

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