Post Office's plan to block couriers from delivering parcels under 1kg

[The Light Green Hornet]

'How we serve the community'? More like 'how we protect our monopoly so that we can help ourselves!' So why do we have a law against monopolies? I refuse to use a corrupt institution.

 

[DreamKing]

2 free bricks for every delivery.

problem solved.

 

[konfab]

I stand to be corrected but the same law compel them deliver to those areas.

What she is saying makes sense. No courier company wants to touch those routes and if they do you pay very high costs. The Post office delivers to those areas and still charge the low post office rate. Each package to those destinations is a loss and it's a loss that SAPO really can't afford.

Simple example.

If you make an energy drink in JHB and only distribute it locally at R10 a can and make profits. If you are forced to sell in CPT at the same price you will be making a loss. You are not allowed to abandon that area or increase prices. Definitely you will need a bailout soon.

Are there actually areas where no courier company would deliver?

According to Wikipedia, post office has 1400 outlets in 2015, and I know they have been closing them left right and center.

The evil private sector on the other hand, is actually much better at this sort of thing. Paxi, which allows every pep store in the country to be a post office, has 2500 pickup points.

These services are actually quite cheap for a retail store like pep, as they already have a logistics network. And they can cross subsidise a bit it as it gets people into the shops.

 

[bwana]

2 free bricks for every delivery.

problem solved.

Except someone will have to pay for the bricks and the increased delivery costs and it will be you.

Including a small item of food on the other hand, such as a boiled sweet or a french fry, would be a lot more cost effective.

 

[Dimpie (COMPUTEK)]

How about successfully delivering the ones above 1Kg before you b!tch about the ones below

 

[Gtx Gaming]

Wish parcel ready, shipped the 25th of July out of China. Pretty quick

 

[Swa]

Are there actually areas where no courier company would deliver?

According to Wikipedia, post office has 1400 outlets in 2015, and I know they have been closing them left right and center.

The evil private sector on the other hand, is actually much better at this sort of thing. Paxi, which allows every pep store in the country to be a post office, has 2500 pickup points.

These services are actually quite cheap for a retail store like pep, as they already have a logistics network. And they can cross subsidise a bit it as it gets people into the shops.

Not to my knowledge. Places without a real address may be an issue but let's be real, SAPO doesn't actually deliver. So from a collection standpoint SAPO is completely redundant.

 

[konfab]

Not to my knowledge. Places without a real address may be an issue but let's be real, SAPO doesn't actually deliver. So from a collection standpoint SAPO is completely redundant.

SAPO shouldn't be doing last mile delivery anyway.

It is the single most expensive portion of logistics, it is why Takealot collection costs R25, whilst delivery costs R75.

What Percentage of Delivery Costs Are Last Mile? - Redbird Logistics Services

Last mile can account for a large percentage of delivery costs, but - what percentage of delivery costs are last mile, actually? Let us find out together.

redbirdlogisticsservices.com

 

[Swa]

SAPO shouldn't be doing last mile delivery anyway.

It is the single most expensive portion of logistics, it is why Takealot collection costs R25, whilst delivery costs R75.

What Percentage of Delivery Costs Are Last Mile? - Redbird Logistics Services

Last mile can account for a large percentage of delivery costs, but - what percentage of delivery costs are last mile, actually? Let us find out together.

redbirdlogisticsservices.com

Which brings up the point, if they don't include pickup or delivery then their offering wasn't that good anyway.

 

[airborne]

I stand to be corrected but the same law compel them deliver to those areas.

What she is saying makes sense. No courier company wants to touch those routes and if they do you pay very high costs. The Post office delivers to those areas and still charge the low post office rate. Each package to those destinations is a loss and it's a loss that SAPO really can't afford.

Simple example.

If you make an energy drink in JHB and only distribute it locally at R10 a can and make profits. If you are forced to sell in CPT at the same price you will be making a loss. You are not allowed to abandon that area or increase prices. Definitely you will need a bailout soon.

The post office isn't cheap any more, even for ordinary parcels sent snail mail, so that subsidizing argument is now moot.

 

[airborne]

Are there actually areas where no courier company would deliver?

According to Wikipedia, post office has 1400 outlets in 2015, and I know they have been closing them left right and center.

The evil private sector on the other hand, is actually much better at this sort of thing. Paxi, which allows every pep store in the country to be a post office, has 2500 pickup points.

These services are actually quite cheap for a retail store like pep, as they already have a logistics network. And they can cross subsidise a bit it as it gets people into the shops.

Other than outlying areas like farms there's very few places couriers won't or don't deliver to. They may not offer overnight delivery to many areas but they service just about everywhere in Sa at least once a week.

 

[cavedog]

The post office isn't cheap any more, even for ordinary parcels sent snail mail, so that subsidizing argument is now moot.

For 2kg and less you will not even find a service close to the ordinary parcel post rate. 3kg and more starts to be expensive because SAPO has a fixed per kg rate as the weight/volumic increases.

 

[airborne]

For 2kg and less you will not even find a service close to the ordinary parcel post rate. 3kg and more starts to be expensive because SAPO has a fixed per kg rate as the weight/volumic increases.

I haven't used the PO for a long time, how much does a 2kg parcel cost to send as an ordinary parcel?

It was getting pretty close to parity with some other courier run options last I checked.

 

[RonSwanson]

Except someone will have to pay for the bricks and the increased delivery costs and it will be you.

Including a small item of food on the other hand, such as a boiled sweet or a french fry, would be a lot more cost effective.

I am happy to pay that in order to starve the PO wakas,

 

[Swa]

I haven't used the PO for a long time, how much does a 2kg parcel cost to send as an ordinary parcel?

It was getting pretty close to parity with some other courier run options last I checked.

They used to have a R35 or something option but as I said that doesn't serve the last mile so it's not an apples/apples comparison. Paxi and Pargo come pretty close to PO rates if not beat them depending on volume agreements in place.