By Erin Boucher
Ottawa courier companies are joining forces with couriers across the country to halt Canada Post Corp.’s intent to expand into the same-day delivery service market.
Over 30 companies have joined the Alliance to Stop Canada Post, which was formed by Montreal-based QA Courier. Four of the group’s 30 members are based in Ottawa.
The Alliance fears Canada Post will unfairly subsidize its courier service. Gary Watson, owner and operator of Stat Messenger, fears this will hurt his business.
“Canada Post has unlimited access to funds and they are already wielding this potential axe,” said Watson adding, “It’s unfair competition.”
Dave Van Dusen, manager of Ottawa-based Velocity Express courier shares Watson’s concerns.
“Having a crown corporation getting involved in your mom- and-pop domain is never good,” says Van Dusen.
However, John Caines, a spokesman for Canada Post says Canada Post does not use its letter service revenues to subsidize its courier business. He adds that the Alliance will not stop Canada Post from expanding its business.
In May 2001 Canada Post purchased 50 per cent of Intelcom Courier of Montreal, a major player in rush delivery service.
The partnership currently has no interests elsewhere, but is looking to expand throughout the country.
Watson says he is angry because he believes Canada Post already has advantages over private couriers, offering their ability to park wherever they want as an example of this advantage.
But courier companies say they can deliver goods faster and better than Canada Post.
“Maybe they can do next day service but I don’t think they will be as fast as us,” said Lyne Beauvais, manager of Horizon Messenger Service.
Watson points out private messenger companies have an advantage because the majority of their employees earn their wages by number of deliveries and commissions. Canada Post employees earn hourly wages, something Watson believes does not encourage employees to work as fast.
“People who are paid in commission take pride in their work and must justify their actions. As soon as you pay someone by the hour, the abuse heightens and there is a lack of commitment.”
Although couriers are confident they serve the market better, they are concerned business will drop.
If this happens, Watson is prepared to move into fragile and personal deliveries.
Van Dusen says the size of the courier company may not be an issue, because timely deliveries are what matter.
“In this business you are only as good as your last delivery.” says Van Dusen.