The Swiss Post May Slow Down Delivery

This is rare: A parcel and letter service provider is allowed to slow down. This has been decided by the Swiss Federal Council for the Swiss Post. Such a thing is only possible if the delivery time level is very high. In addition, the basic services for postal and payment services are to be expanded with digital offerings and placed on a financially sustainable basis.

(Bern) The Swiss Post is in the midst of digital transformation. The volume of letters has decreased by a third over the past ten years. The number of cash deposits at the counter has even dropped by almost two-thirds during this time. This trend is expected to continue. By 2030, the Post expects a further reduction in letter volume of around 30 percent. Cash deposits could even decrease by 80 percent.

Against this background, the Federal Council has acknowledged the report on the future design of basic services for postal and payment services. At its meeting on June 14, 2024, it decided to initiate a revision of the Postal Ordinance. The Federal Department of the Environment, Transport, Energy and Communications (UVEK) is to prepare a consultation draft and submit it to the Federal Council by the end of February 2025.

The key points of the draft include:

• More flexibility in delivery
  The Post must in future deliver at least 90 percent of letters and parcels on time. Currently, the requirements are 97 percent for letters and 95 percent for parcels. In the future, the Post is generally required to deliver to settlements that are inhabited year-round. The obligation to deliver to all year-round inhabited houses, which came into force in 2021, will be lifted.

  The current requirements incur high costs in basic services. They force the Post to invest in oversized infrastructure that is only utilized in exceptional cases. Delivery to remote houses often involves long distances for postal workers. With the regulatory relief decided by the Federal Council, the Post will gain more flexibility.

• Stronger focus on digital offerings
  The needs of the population and businesses have changed due to digitalization. This development is not sufficiently taken into account in the current postal legislation. The Federal Council wants to change this. In the future, a digital letter should be part of the basic services. The use of this offering will be voluntary.

  In payment transactions, digitalization in Switzerland is well advanced. Nevertheless, cash still fulfills important functions and contributes to the resilience of society and the economy. Therefore, basic services should continue to include cash-based analog payment transactions. In the future, the payment account should also include an online payment method (e.g., debit card or payment app) as well as internet payment transactions.

Funding provisionally secured

The Post must provide basic services according to the Postal Act on a self-financing basis. It does not receive any financial support from the public sector.

The relief measures decided by the Federal Council are expected to relieve the Post by up to 45 million Swiss francs per year starting in 2026. This provisionally secures the funding of basic services. The Federal Council acknowledges that a comprehensive modernization of basic services is unavoidable in the medium to long term. However, it refrains from committing to further measures at this time. In 2025, the UVEK will present the Federal Council with the key parameters for a revision of the Postal Act regarding the design of basic services from 2030 onwards.

Photo: © Swiss Post