E-commerce new frontier in mail service
Emirates Post official says last-mile delivery of goods bought online presents huge opportunity
The e-commerce sector represents the greatest growth potential for postal services in the coming five years, the acting CEO of Emirates Post Group said.
In an interview, Abdullah Mohammad Al Ashram told Gulf News that the “last-mile delivery of goods” purchased online is a key focus area of an increasingly diversified portfolio of Emirates Post.
His comments came during a recent discussion of the 20172020 strategy of the UAE postal service, focusing on challenges and opportunities in the market.
The worldwide decline in letters and documents posted through traditional mail, caused by the proliferation of digital communication, has created both obstacles and prospects for postal administrations, Al Ashram said.
Online stores and apps have also replaced many physical markets.
“People are really buying products online and someone has to deliver these products to them, or provide a collection point, like a locker. So what has been a big opportunity for all the postal administrations is to focus on and enhance the lastmile delivery of goods.”
There is also a need for a service to return the product if the customer has an issue with it.
“Now, with so much attention being paid to a customercentric approach, people are considering what is the easiest way for the customer to return or exchange the product.”
Al Ashram also highlighted other sectors where Emirates Post can play a leading role.
“Anything that is done on a smart government platform online will need a logistics partner on the ground — that’s where the postal administration can play a big role because we have a huge network. We cover the whole country in terms of delivery,” he said.
Emirates Post is also eyeing expansion plans in financial services. “There are a lot of financial services that we could offer, such as remittances and transfer to some of the banks, taking care of payment of some of the credit cards, and maybe some insurance products as well. This is the trend now.
“The post office has always been playing a role in financial services. In the old days, we used to have the money order. People used to come to the post office to send a money order. Because it used to be manual, with a lot of documents and paperwork involved, the process used to take days to transfer that money. Today, the money is remitted to the receiving party in seconds.”
On World Post Day (October 9), the Universal Postal Union, a specialised agency of the UN, congratulated Emirates Post on its new rating as the best postal service in the Middle East.