Private couriers boom as Canada Post chaos drags on — SMBs pay more to keep customers happy.
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Orders stalled. Parcels sitting idle. Customers chasing tracking numbers that haven’t updated in days. That’s the reality for thousands of Canadian SMBs right now.
Canada Post is deep in crisis. Since May, the Canadian Union of Postal Workers (CUPW) has enforced a nationwide overtime ban after contract talks collapsed. The impact? Deliveries are stalling, and Canada Post says volumes have crashed by about 60%, with its market share sliding from 62% in 2019 to just 26.7% in 2024, according to Reuters. For an organization once seen as untouchable, this is uncharted territory.
This week, Canada Post and CUPW are back at the bargaining table after union members rejected the Crown corporation’s “final” offer in a government-forced vote. The package promised roughly 13%, as reported by Global News, in wage hikes over four years, more part-time roles, dynamic routing and no mandatory overtime. CUPW says it’s not enough. The overtime ban stays in place, and Canada Post admits the uncertainty is driving customers — including thousands of SMBs — into the arms of private couriers.
For small business owners, waiting for Canada Post to fix itself isn’t an option. Every late delivery is a potential lost customer. Lisa Graham, founder of Calgary-based YYC Beeswax, made the switch early: “Anything that’s going to take over two days, we’re spending extra to ship with private courier services. It’s the only way to keep customers happy,” via Reuters.
It’s a tough trade-off. Private courier costs can be double what Canada Post charges — but for many SMBs, customer trust is priceless.
Private couriers smell opportunity
FedEx is in full growth mode — setting up temporary sorting hubs, adjusting delivery routes and offering special rates to win over frustrated businesses. UPS isn’t spelling out its play, but it’s clearly picking up displaced Canada Post customers.
The numbers tell the story. Canada’s courier, express and parcel market was worth $16.74 billion in 2024 and is expected to hit $21.55 billion by 2030. If the postal strikes drag on, analysts say Canada Post’s share could fall into the teens by late 2026, according to analysts at Mordor Intelligence. This isn’t just about postage fees — it’s about predictability. Reliable delivery keeps inventory moving, cash flow healthy and customers loyal.
Kevin Kliman, President of Canadian Business at Employment Hero, has seen the same pattern in other markets. “When national delivery services falter, SMBs are forced into survival mode. You either absorb the higher costs or risk losing your customer base. Neither is sustainable long-term — and it’s why competition in delivery is critical for small business resilience.”
But long-term, paying more for private couriers without raising prices will squeeze margins. Many SMBs are having to choose between protecting profits and protecting relationships.
Right now, standing still is the biggest risk. Three moves to make immediately:
- Diversify your carriers
Don’t be reliant on one provider. Set up accounts with multiple carriers so you can switch instantly. - Be upfront with customers
Add delivery expectations at checkout, offer premium options and make delays part of the conversation before they become complaints. - Review your shipping margins
Factor in higher courier costs so you’re not quietly bleeding profit.
Some SMBs are also experimenting with regional couriers or gig-economy delivery services for local orders — turning disruption into a chance to find faster, more flexible fulfilment. Canada Post insists it can turn things around, but with labour talks dragging and trust already eroded, many SMBs won’t be rushing back.
For business owners, the lesson is clear: don’t wait for the system to fix itself. The ones who adapt now — finding new delivery partners, rethinking shipping strategies — will come out ahead. As Kliman puts it: “In disruption, there’s always opportunity. The SMBs that adapt fastest will come out stronger, even if the short-term costs sting.”
