Swiss Post’s core business is faltering – in its search for new, digital business, it is buying companies all over the world.
Letter and parcel post, post offices, post bus and banking – the well-established mainstays did not give Post boss Roberto Cirillo much joy this year. Group profit fell by a good third to CHF 295 million.
In their search for further growth, those responsible for Swiss Post added a new area to the business two years ago: the state-owned company wants to create added value again in the future with “Communication Services”. Underneath, the state-owned company summarizes everything digital.
Bringing the physical into the digital world
According to Christian Levrat, Chairman of the Board of Directors, Swiss Post wants to transform everything that was previously physical into the digital world. Swiss Post brings the know-how in-house with company takeovers and shareholdings.
The commitment is widespread: software development companies are now part of the postal group, as is a shopping app. He is also involved in areas such as health, advertising and the cloud business.
Active in more than twelve countries
In the meantime, Swiss Post can boast an impressive network of companies all over the world in the various areas of activity. Apart from Switzerland, it operates in twelve countries with more than 60 companies. She bought it or owns the majority.
Legend:
The Post is present in more than a dozen countries.
SRF
She holds a minority stake in other companies, or she has invested venture capital. Including companies in Spain, Ireland or Estonia. The Post is even present in China, with a field office – for the purpose of market observation.
Watched by Weko
Of course, Swiss Post’s push into the new areas is not well received everywhere. Companies in particular do not like to see state competition.
For example, Abacus, which specializes in accounting software, submitted a complaint to the Competition Commission (Weko) after the postal service took over Klara. Among other things, it produces accounting software.
Weko is to check whether the Post is abusing its dominant position and allowing itself cross-subsidies that violate antitrust law. Weko is investigating the situation in a market observation that should last a few more weeks, as it is said in Bern.
«Unfair competition»
Economists also criticize the postal acquisitions. “It is a problematic development when companies in the state monopoly area move into the private sector,” says Christoph Schaltegger, director of the Institute for Swiss Economic Policy at the University of Lucerne. It is problematic because it is unfairly competing with other companies. “On the one hand, Swiss Post does not have the same risks, it can pass the risk on to the taxpayer.” The Post also does not have the same financing costs. “The Post has much more privileged access than the market participants.”
“A normal actor”
At Swiss Post, of course, you see things differently. “The post office has no state guarantee. The Post has a ban on cross-subsidization, which is strictly observed, »says Post boss Roberto Cirillo. The Post is a completely normal player in the market, in order to generate profits in competition and to finance the basic service without a franc of tax money. That is what the legislature intended. “We’ve been competing in the open market every day for 20 years.”