challenges facing express delivery services in canada's urban centres

Institute of Housing & Mobility
Challenges facing couriers and same-day messengers in Canada
INTRODUCTION
Classical economic theory suggests that the three key factors of production are labour, land, and
capital. These factors were deemed sufficient for producing goods and services until the
emergence of communication and information technologies (CIT). The modern means of
communication have changed the way business is being conducted. From telephone and telexes
for most of the 20th century, faxes in the 80s, e-mail in the 90s, and web conferencing today,
businesses have readily adopted a host of technologies to improve communication with various
stakeholders.
Despite the technological advances, there has been no shortage of demand for paper-based
communications. The forecasts of paper-based communication becoming obsolete after the
emergence of e-mail have ultimately proven false. In fact, public and private sector couriers are
carrying more documents and packages today than they did before the emergence of e-mail.
The fact remains that as economies and populations grow around the world, the volume of letters
and parcels also increase. Moreover, globalization and integration of economies, as well as
advances in logistics, supply chain management, and just-in-time delivery systems have also
contributed to the growth in volume and distances traveled by letters and parcels. The efficient
movement of these shipments depend on express delivery services (EDS), consisting of courier and
same-day delivery businesses.
This report has been prepared for policymakers, media, and the general public to:
1. document the scope and contribution of EDS to the Canadian economy,
2. ascertain potential impediments to efficient deliveries in urban cores,
3. identify any conflicts between a city’s desires to promote business growth with regulation,
policy, facilitation, and enforcement,
4. review parking regulation, administration, enforcement, and penalties, and
5. provide recommendations for practical short-term and longer-term solutions to urban
mobility challenges faced by EDS in Canada.
Challenge
While different tiers of governments have made significant efforts to ensure that businesses enjoy
ready access to labour, the same has not been repeated for other necessary factors of
production, such as letters and parcels. Massive investments in public transit systems and highways
make it possible for millions of workers to commute to work each day. Subway and streetcar
stops, bus stops and bus bays facilitate access to work destinations for millions of workers.
While billions of dollars are routinely spent to create new transit services including bus stops and
bus bays to bring workers to businesses, ironically efforts are being made to restrict commercial
vehicles’ access to the same businesses. In the absence of finding creative urban design and
technological solutions to facilitate delivery of letters and parcels to businesses, the current
practice is to penalize express delivery vehicles by imposing fines and penalties. It is therefore
no surprise that in 2006 in the City of Toronto alone, FedEx, United Parcel Service, and Purolator
were fined $1.5 million for a total of 33,700 parking tickets. It is estimated that FedEx, United
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