The technology revolution has resulted in the disappearance of many familiar everyday objects. Telephone directories, landline phones, street maps, encyclopaedias, alarm clocks, radios, CD players, newspapers, printed photos, birthday and Christmas cards are now either obsolete or on their way to being obsolete. Most of the functions of these objects can now be accessed using a smartphone, tablet or computer. How then has the technological advance of email affected the good old fashioned letter — nowadays referred to in derogatory terms as ‘snail mail’? In Australia letters have traditionally been delivered by the more than 200‐year‐old Australia Post, but as communication for more and more people involves emailing, instant messaging and social networking Australia Post ‘is facing significant structural decline’.

In March 2015, the then‐Communications Minister Malcolm Turnbull announced that ‘Australians are now sending 1 billion fewer letters a year than they were in 2008, with letter losses rising to more than $300 million a year. While Australia Post has been able to offset these losses by growing its parcels business, losses in letters are now so large that they are overwhelming all profitable areas of the business’. While the post is still delivered every day, email has replaced a huge amount of ‘snail mail’. In addition many customers pay their bills online using Paypal or other secure payment methods instead of sending a cheque in the mail. To offset these losses, Australia Post has had to adapt and change its offerings.

Today it is in fact no longer just a postal service but a retailer, courier and parcel deliverer. As part of the diversification Australia Post acquired Star Track Express couriers in 2013, which led to a 10 per cent increase in domestic parcel delivery. Between 2010 and 2015, under the guidance of CEO Ahmed Fahour, parcel revenue at Australia Post tripled to $3 billion. In May 2016 Australia Post controversially announced plans to start charging customers to pick up undelivered parcels held for more than five days. Another strategy to ensure the survival of Australia Post is a two‐tier mail service proposed by Mr Turnbull and approved by the Australian Competition and Consumer Commission (ACCC). ‘Australia Post would introduce a two‐speed mail service, with a regular service operating two days slower than the current delivery speed, and a premium‐rate priority service’. From 4 January 2016 the cost of a stamp for the regular (2 days slower) service is 70c and rises to $1 for the express service. 

To increase revenues, Australia Post now offers a whole suite of additional products and services, including passport applications, travel cards and travellers cheques, travel insurance, land title transactions, river and vehicle licences, police checks and firearms licences.

What a change: from a smiling postie on a bicycle or scooter popping letters into your mailbox to a retailer, courier, quasi‐financial institution and major parcel delivery service.

QUESTIONS

1. What other basic household items can you think of that have become obsolete due to the technology revolution?

2. What strategic changes has Australia Post implemented to lessen the impact of the decrease in the volume of letter?