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The Economics of the Post Office

Postal Reform Around the World

How other countries reformed their postal services - Germany's privatisation into DHL, Britain's Royal Mail sale, Japan Post and the US Postal Service's struggles - and lessons for India.

Many countries have reformed their postal systems.

Germany

  • Deutsche Post was privatised from the 1990s.
  • It bought DHL and became a global logistics giant, now called DHL Group.

United Kingdom

  • Royal Mail was privatised in 2013.
  • It struggled with falling letters and labour disputes; in 2024, it was acquired by Czech billionaire Daniel Křetínský’s company.

Japan

  • Japan Post holds a huge bank and insurance business.
  • Privatisation began in the 2000s under Prime Minister Koizumi, and shares were partly listed in 2015.

United States

  • The US Postal Service is an independent government agency.
  • It has had large losses, partly due to a 2006 law requiring pre-funding of retiree health benefits, later repealed in 2022.

Lessons

  • Parcels and logistics offer growth.
  • Financial services can be valuable but need regulation.
  • Universal service must be funded somehow.
  • Privatisation results vary.
The postal giant

Deutsche Post, once a government department, became DHL Group, delivering parcels worldwide and running logistics for major companies.

Thinking privatisation always fixes postal problems

Results vary; Royal Mail struggled after privatisation.

Key takeaways
  • Deutsche Post privatised and became DHL Group.
  • Royal Mail was privatised in 2013 and later acquired.
  • Japan Post has large financial businesses.
  • USPS struggled with losses; reform results vary.
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