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Neither the Carrot nor the Stick: How to Ensure Adequacy of Traditional Postal Operators’ Funding in a Rapidly Transforming Market

In: The Economics of the Postal and Delivery Sector

Author

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  • Emanuele Frezza

    (UPS Europe)

Abstract

The postal services market is going through a transformation that is challenging traditional postal operators’ ability to meet their universal service obligation (USO). Letter mail decline and increased parcel volume are driving operational changes and costs and re-shaping consumers’ behaviors. In order to stay competitive in a rapidly changing market, postal operators need to apply advanced technology solutions to the entire delivery chain while asked to increase efforts to promote sustainable deliveries and reduce environmental impact of their operations. Adapting to the new scenario requires investments in infrastructure and technology to support the delivery of growing parcel volumes and improve customers’ shipping experience whilst coping with obligations related to universal service provisions.

Suggested Citation

  • Emanuele Frezza, 2022. "Neither the Carrot nor the Stick: How to Ensure Adequacy of Traditional Postal Operators’ Funding in a Rapidly Transforming Market," Topics in Regulatory Economics and Policy, in: Pier Luigi Parcu & Timothy J. Brennan & Victor Glass (ed.), The Economics of the Postal and Delivery Sector, pages 205-220, Springer.
  • Handle: RePEc:spr:topchp:978-3-030-82692-5_14
    DOI: 10.1007/978-3-030-82692-5_14
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