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Poste Italiane wants to ride e-commerce wave to stimulate parcel.

MILAN (Reuters) – Poste Italiane aims to more than double the number of packages deliver by 2022, the head of the Post and Package (M&P) unit said, as the former postal monopoly presses on with the restructuring.

FILE PHOTO: Poste Italiane headquarters is seen in Rome, Italy, May 30, 2016. REUTERS/Alessandro Bianchi

The group, which now consists of insurance and financial departments and a digital payments unit in addition to M&P, has suffered falling letter volumes since at least 2008.

But Poste recorded its first growth in package sales in 10 years in 2018, compensating for the decline of the letters and stating that the restructuring was beginning to pay off, it said.

“We strive to deliver 100 million packages in 2022 in comparison with 45 million of our employees delivered last year,” Massimo Rosini, head of M&P division, told investors in London.

The group wants to increase its market share for e-commerce package delivery to 40 percent in 2022 from 33 percent in 2018.

E-commerce is expected to grow rapidly in Italy as the country of the catches with other European countries such as Britain, where online shopping is a lot more common.

In order to compete with e-commerce giant Amazon, which is offering the excellent delivery service in the major Italian cities, Poste plans to fully implement a joint delivery system introduced last year and is the development of an alternative network of delivery outlets.

Post signed an agreement last year with the trade unions to extend service to the weekend and the staff hand over both parcels and letters to customers, while reducing the frequency of the letter deliveries.

The income from the M&P division is expected to remain virtually stable at approximately 3.5 billion euros this year, accounting for about a third of Poste the total turnover of 11 billion expected for this year, Rosini said.

Poste’s CEO said on Tuesday the group was exploring the possibility of delivering with drones and unmanned vehicles to gain more customers.

Reporting by Francesca Landini; Editing by Edmund Blair

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