Leverages newspaper delivery network to meet growing consumer demand for at-home package delivery
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Postmedia Network Inc. will be launching its own parcel service starting this summer, leveraging its newspaper delivery network to meet the growing consumer demand for at-home package delivery.
Postmedia Parcel Services plans to fill the gaps in middle and final mile parcel services, delivering small packages to homes in Alberta, Saskatchewan, Manitoba and Ontario, according to a press release issued Thursday. Postmedia is partnering with publishing company Brunswick News Inc. on the initiative, which will see Postmedia’s delivery operations expanded to include trucking, sorting and distributing the parcels.
The demand for online shopping has been steadily increasing over the past few years, growth that accelerated during the COVID-19 pandemic, which closed in-store shopping for most businesses.
Andrew MacLeod, president and chief executive officer of Postmedia, said the new service is expected to help meet the growing demand for e-commerce sales by leveraging the company’s established distribution network.
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“We’re embarking on this business to support (last-mile delivery for retailers) and to capitalize on the growing demand and to utilize the network that we’ve already built for our existing business,” MacLeod said.
The new service could also help Postmedia diversify its revenue sources.
“It’s an arrow in the quiver and you need many of them,” MacLeod said, adding that the company will have to see how the service works out over the next few quarters. “This certainly has the potential to be material in the future or we wouldn’t be doing it.”
Late last year, daily newspaper company Torstar also launched a parcel service in partnership with Toys ’R’ Us Canada.
MacLeod said he expects that the Postmedia parcel service will both compete and fill the gaps left by other delivery competitors.
Craig Barnard, Postmedia’s senior vice-president of print operations, will lead the new division with Ben Edelstein taking on a new role as vice-president of operations.
