The Future of Services of General Economic Interest in the Postal Industry

The chapter delves into the transformative trends in the postal industry, driven by digitalization and e-commerce, which have led to a decline in mail volume and a surge in parcel demand. It examines how Universal Service Providers (USPs) have diversified their services to maintain profitability, including the provision of Services of General Economic Interest (SGEIs). The European Commission's definition of SGEIs is explored, emphasizing their role in addressing market failures and promoting social welfare. The chapter also analyzes the case studies of bpost and La Poste, demonstrating how these USPs have successfully expanded into various SGEIs, such as press distribution and financial services. The benefits of SGEIs for both USPs and society are highlighted, including increased revenues, social cohesion, and the avoidance of competition distortion. The chapter concludes by discussing the future potential of SGEIs in the postal industry, particularly in the context of the Covid-19 pandemic and the evolving role of USPs in delivering essential services.