Shipping Startups Seize the Shopping Season Amid Canada Post Strike | Fintech.ca

The e-commerce market in Canada is projected to grow by roughly 10% per year through 2029, data from Statista suggests, which would result in a market volume of more than US$100 billion by the turn of the decade.

With Canada Post currently on strike, private carriers have been absorbing more of the country’s growing e-commerce shipping market.

It is probably no surprise that Canadians are still actively shopping online despite Canada Post services shutting down—over 27 million people throughout the nation engage in e-commerce, and most do not seem eager to miss the rush of Black Friday and Cyber Monday deals ahead of Christmas season.

Still, for both customers and merchants, the impact of no federal courier has been tangible across Canada.

“The strike has disrupted the entire e-commerce shipping ecosystem,” says Jose Sagun, a Senior Business Analyst for Stallion Express, a Canadian e-commerce courier service launched in 2015. “These delays can significantly impact business reputation and customer relationships.”

Canada Post is “the backbone of shipping” for businesses across the country, leaving many scrambling for alternative solutions during the busiest shipping period of the year.

Faced with “an unprecedented shipping challenge,” businesses are turning to mainstay providers like UPS, FedEx, and Purolator, as well as tapping into emerging options such as the rapidly growing UniUni, Fleet Optics, and Stallion.

“We’ve seen a massive increase in signups as businesses search for affordable and dependable shipping alternatives,” Sagun said. “Businesses that can adapt quickly and find reliable solutions will have a competitive edge in terms of customer satisfaction.”

The strike serves as a reminder of the benefits of a more diversified shipping strategy, according to Sagun. By embracing alternative, tech-forward solutions and investing in innovative logistics systems, businesses can better prepare for future disruptions.

The demand for such solutions and systems is evident as earlier this month Richmond’s UniUni landed in fourth spot on Deloitte Canada’s Technology Fast 50 list with revenue growth of 12,854%.

Negotiations with Canada Post remain slow-progressing, reports reveal, as workers demand higher wages while the company continues to lose more than one billion dollars annually.