Courier companies give India Post a tough run

Courier service companies collect articles from banks, public and private sector institutions offering a very low price.

MANGALORE: With courier companies offering service at very competitive rates, India Post finds it very difficult to maintain its business-levels in the city. Statistics available with India Post indicate that number of postal articles handled in the city is coming down significantly as compared to previous year.

The Mangalore division of India Post, which handled 9,29,537 unregistered postal articles in a fortnight from August 8 last year, could handle only 3,70,168 articles during the same period this year. Officials attribute lowest price being offered by courier companies to deliver articles and the increased usage of e-mails as the reason for decline in business.

Mangalore division of India Post has two head post offices, 55 sub post offices and 96 branch post offices. In the above-mentioned fortnight in 2010, the division handled 3,03,188 envelopes, but the number has come down considerably to 1,35,229 for the same period in 2011. Similar is the case of post cards, printed post cards, meghdoot post cards and inland letters.

However, there has been a narrow increase in the number of inland letters handled in rural areas in Mangalore in 2011. While 12,426 inland letters were handled in the fortnight in 2010, it has increased slightly to 12,611 in 2011.

"As banks, public and private sector institutions prefer courier service instead of postal service, the business has been reduced," says T G Naik, senior superintendent of post offices, Mangalore division. It's not possible for postal department to reduce the price to beat the competition from courier sector. "Meanwhile, courier service companies collect articles from banks, public and private sector institutions offering a very low price," he added.

Chandrashekhar (name changed), branch manager of a courier service company, said courier companies reduce the rate based on the quantity of articles. "If the number of articles are more, then the rate is reduced accordingly. If an organization makes an agreement with courier companies directly, then the rates will be reduced further," he adds.

Officials attribute lowest price being offered by courier firms to deliver articles and increased usage of emails as the reason for decline in business. While 12,426 inland letters were handled in the fortnight in 2010, it has increased slightly to 12,611 in 2011.

Source: The Times of India , October 21, 2011