Canada Post’s Mounting Losses: Time to Rethink Crown Corporations?

Canada Post is facing one of the most challenging chapters in its long history. The national postal service recently reported a staggering $407 million loss in the second quarter of 2025, with the year on track to become its eighth consecutive year in the red. Analysts warn that unless dramatic changes occur, this could be the corporation’s most significant loss yet. The financial bleeding has left many Canadians asking: Is it still worth keeping Canada Post afloat?

At its core, Canada Post operates as a Crown corporation, meaning it is owned by the federal government but expected to function as a commercially self-sufficient entity. Unlike a government department, Crown corporations are designed to compete in the market while still serving the public interest. In theory, this model strikes a balance between financial independence and social responsibility. In practice, however, Canada Post’s balance sheet shows a system that may no longer be sustainable.

The postal service is grappling with multiple issues. Ongoing labour disputes with the Canadian Union of Postal Workers (CUPW) have created operational instability for nearly two years. A strike in late 2024, followed by back-to-work legislation and prolonged contract negotiations, disrupted services and eroded customer trust. Businesses and individuals who rely on reliable delivery increasingly turned to private carriers during the disruptions, and many haven’t returned.

At the same time, structural challenges continue to weigh Canada Post down. The rise of digital communication has gutted traditional mail volumes, and while parcel delivery has surged in the e-commerce era, competition in that sector is fierce. Giants like FedEx, UPS, Amazon, and Purolator (ironically also owned by Canada Post) have carved up the market, leaving the Crown corporation struggling to compete on speed and efficiency. Efforts to modernize—such as shifting from door-to-door delivery to community mailboxes and replacing smaller post offices with kiosks—have been met with resistance and controversy.

Still, as business analyst Marvin Ryder points out, Canada Post retains two unique advantages: its mandate to reach every address in the country, including remote areas that private carriers often ignore, and its relatively affordable rates for small businesses. These strengths highlight the dual nature of the organization—it’s not just a delivery service but a national infrastructure that ensures Canadians, no matter how isolated, remain connected.

This brings us to the larger, uncomfortable question: should Canada continue to prop up large Crown corporations that struggle to balance public service with profitability? Critics argue that Canada Post has become a massive drain on taxpayers, forcing the government to cover deficits year after year. Supporters counter that its universal service mandate is a public good that can’t simply be handed over to the private sector.

Perhaps the solution lies in redefining Canada Post’s role rather than clinging to outdated models of operation. Should it focus more heavily on parcel delivery and logistics, even if it means scaling back letter mail services? Should it transform into a broader digital and physical communications infrastructure provider? Or should Canada seriously consider privatization, as many other countries have done with their postal services?

One thing is certain: the current path is unsustainable. With losses mounting and no clear turnaround strategy in sight, Canadians must confront the reality that Canada Post’s future will require bold changes. The question is no longer whether the government will step in—it inevitably will—but whether it’s time to rethink how much taxpayers should continue footing the bill for a corporation that seems increasingly out of step with the times.