Australia Post banks on e-commerce after losing public purse in mail

By The Mandarin

Monday October 12, 2015

Australia Post will today commence an internal restructure to devolve decision making and de-emphasise its letter-delivering service for government after last month delivering its first annual loss in 30 years. Instead, it will focus on new business as an online commerce platform.

The government-owned enterprise needs to move on from just enabling government and corporations to communicate with customers through physical letters, its chief executive Ahmed Fahour wrote in a message to staff last week.

“We must now, in addition, place dedicated focus on building and delivering solutions that enable governments, financial institutions and major corporates to create and accelerate their own digital futures, so they can easily connect with and provide essential services to their citizens and customers.

“As we continue to build out our competitive and sustainable e-commerce business, we need to devolve decision making and work differently to rapidly deliver new innovations for our customers.”

To drive this new focus, Fahour has put his former CIO Andrew Walduck (pictured) in charge of the new “Trusted eCommerce Solutions” division that will split from the postal services division.

Shared corporate services such as finance and procurement will be brought into a single business services division which will be headed by former Medibank Private chief customer office Laz Cotsios.

Most government entities, from all tiers, still have legislated dependence on postal services for communicating with customers or deliver of services.

Australian electoral commissioner Tom Rogers recently told the federal same-sex marriage plebiscite inquiry that postal services remain critical to Australian elections as they are currently run.

The Australian Electoral Commission is openly exploring a future where Australia Post is not a viable option for facilitating absentee voting, particularly after the postal service sought permission from the Australian Competition and Consumer Commission to raise the basic postage rate from 70 cents to $1.



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