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Courier Services & Postal Services: What's The Difference?
Monday, 19 November 2018 at 10:20
Postal Services and courier mail services are extremely different. Letters delivered by the Post Office are sent through the public postal service, whereas courier mail services are managed by private businesses.
Given the choice, most people would prefer to use a private courier service for everything, however, the reason many countries have a public postal service is that unlike most private sector couriers Public Postal Services are not supposed to be profit driven
Courier services are profit driven, which is why they tend to strike less, have better customer service, deliver sometimes within 24 hours across the world and have been known to wipe public postal services out of business. In many countries governments frequently have to bail out public postal services with taxpayers money.
Private Courier services have to pay close attention to costs, this is why most private courier services have no problem working together, with that said people residing in rural communities typically will not have mail delivered to them by Private Couriers without paying high costs.
Regarding Private Courier service, yes it’s true that they can compete and in many ways outcompete the Post Office, but the real question is if one or two private couriers reign supreme in mail delivery and both decide that they’d rather not deliver to certain area’s or they’d like to raise prices.
The problems of course with most public services are typically the employees themselves who like anyone else want higher pay and safe secure retirements. The problem with this type of thinking in the public sector is that economies go up and economies go down. Meaning some years Private Sector is profitable other years the Private sector isn’t profitable.
If the government is running a deficit, it usually means that the government doesn’t have any money if the government doesn’t have any money, the public servants still expect to be paid. This is the difference between the Public Service and the Private Sector. When a private courier company doesn’t make any money it pays its employees and then it declares bankruptcy when a public courier doesn’t have any money it asks for a bailout.
If a private courier company isn’t profitable it has to find creative ways to be profitable, being that public services or public sector workers typically don’t understand the costs associated with running a business, they’re usually not incentivized to make any changes even when their operations aren’t cost-effective.
It would be better if the Post Office should have a small section of it dedicated mail delivery. The bulk of the operations should be sorting. The actual delivery of parcels in the public post office should be done primarily by private couriers who bid on delivery projects.