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- It has had large losses, partly due to a 2006 law requiring pre-funding of retiree health benefits, later repealed in 2022.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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