They forgot all the small delivery services - and the market share numbers are wrong.

This article has quoted very misleading "estimated" market share numbers.

Australia Post is rapidly losing out in the parcel delivery market, to the competition.

The vast and growing legions of "small time" courier services are positively eating Australia Posts market up.

Fahour totters around like a senile geriatric, fly swatter in hand, while the floor, walls and ceiling are consumed by the termites, around him.


http://www.theaustralian.com.au/business/the-deal-magazine/australia-post-rivals-picking-up-the-parcel-business/news-story/

Australia Post rivals picking up the parcel business

FedEx’s local acquisition of TNT Express and Toll’s new global owner are both signs of changes in the industry.

    Glenda Korporaal
    Associate Editor (Business)
    Sydney

International players and small local start-ups are challenging Australia Post in the area it believes will shore up its future — parcel delivery. At the top end of the market, Japan Post’s $6.5 billion takeover of Toll Holdings and FedEx’s $6.3bn takeover of TNT Express means fiercer competition in the business and consumer area, particularly for parcels delivered from offshore.

Locally, Australia Post’s hold on parcel deliveries is being challenged by a range of new players, including a new Officeworks service, Mailman; the NRMA backed start-up Sendle; and the delivery acceptance company, Parcel Point.

“Australia Post is going to have a major challenge on its hands in the next 18 months,” says Morningstar’s head of Asia Pacific industrial equities research, Ross MacMillan. “There are going to be a lot of changes in market share and I can’t envisage that it is going to be favourable for Australia Post.”
 
He estimates Australia Post and Toll together deliver about 60 per cent of business parcels, with TNT holding 10 per cent of the market and DHL 5 per cent. But he says Australia Post dominates the parcel delivery to individuals — the fastest growing market — with about 75 per cent market share. Toll has 10 per cent, TNT about 5 per cent.

With both Toll and TNT now more aggressive, the post office can expect fiercer competition for the Australian parcel market in both sectors.

“Australia Post has had the dominant position in the parcel delivery business,” MacMillan says. “It has been a real growth area for them and quite profitable but these privately owned companies are really going to go after its massive market share in the domestic market.”

While Toll is already an active player in the local market, MacMillan says the FedEx takeover of TNT could be a significant boost to the competitive landscape. FedEx does not offer domestic express parcel services in Australia, and TNT’s operations here have been losing money. But the combination of the two players under an aggressive American parent changes the outlooks.

 “These hook-ups are going to create some very efficient global networks for parcel delivery,” says University of New England management professor, John Rice. He says Australia Post has been “overcharging” for parcel delivery because it has high fixed costs, and the new, larger players will “create a lot of turbulence because they can operate on a global scale”.

The competition will also increase options for delivery. Many consumers are not at home to receive deliveries during working hours. The default — having goods delivered to your workplace is now banned by some companies, overwhelmed by the volume of personal parcels.

Already there are innovative responses. Officeworks, owned by Wesfarmers, is open on weekends and late at night, and has just announced a new parcel delivery service called Mailman that allows customers to collect parcels at stores around the country. Customers go to an Officeworks shop, print out a delivery label for their parcel and put it in a locker in the store, all without the need to stand in line or deal with a staff member. The goods are delivered by a courier company to another Officeworks location.

Officeworks argues that it provides a competitive price compared to Australia Post, with drop-off and pick-up options for much longer opening hours than post offices. The chain has about 150 stores around Australia, but if the concept takes off it has the potential to expand to more than 1000 stores in the Wesfarmers group, including Coles and Bunnings.

Australia Post offers an alternative: customers opt to have their parcels delivered to secure parcel collection lockers which are accessible 24/7. There are about 200 of these locker stations. This is done by using a MyPost delivery account, which also allows you to have goods delivered to any post office for collection.

Australia Post has just launched an app for the new Apple Watch that allows people to track the location of their parcel. The app also opens the locker.

Andrew Walduck, executive general manager of information, digital and technology at Australia Post says: “The app reinforces Australia Post’s broader commitment to creating more compelling experiences for customers across all channels­ in post offices, online and using new mobile technologies.”

Other services offered by Australia Post for online shopping include ShopMate, a secure delivery service launched last year to allow Australian online shoppers to buy from retailers in the US that do not ship to Australia. It has expanded its Express Post parcels service to include Saturday deliveries, is opening more post offices on Saturdays (some 2300 post offices are open six days a week) and has developed three different options to help customers with their returns.

Online logistics chain Sendle, launched last year, offers door­-to-door parcel delivery options. It is backed by investors including the NRMA and plans to use existing courier and delivery companies to handle its parcels. The business model is similar to Uber — using spare capacity of existing operators.

Sydney start-up ParcelPoint is also carving out a market, with more than 1500 outlets, including newsagents, pharmacies, video and convenience stores, accepting parcels bought online.

More than 90 different retailers, including fashion company The Iconic and adidas, now offer online shoppers a ParcelPoint delivery. While this still relies on Australia Post and other courier services for the physical delivery, it provides competition for the Australia Post lockers and post office acceptance outlets.