With Canada Post on strike, Metro Vancouver courier company sees an opportunity

Courier companies see spike in business An ongoing strike at Canada Post ahead of the busy holiday season has created a surge in demand for couriers.

Trexity expanded its app-based local courier company for small businesses to the Metro Vancouver market in September. Its drivers are part of the gig economy, accepting assignments in the Trexity app much like food deliveries. And since Canada Post workers went on strike, they’ve been run off their feet.

“A lot of local businesses are flocking and looking for alternate solutions, and we happen to be one of those,” said Trexity founder and CEO Alok Ahuja. “We are doing hundreds of merchants in Vancouver and then we are doing thousands of deliveries.”

Ahuja says the strike has left small businesses in the lurch at their most important time of the year, with Black Friday and Cyber Monday sales kicking off the holiday rush.

“Its just good to know that we are in a position to help these small businesses. I say it to the team every day, 'Strong relationships are formed in times of need, and they need us and we need them,'” said Ahuja.

He also believes the strike is giving smaller tech-based companies an opening to show small businesses how the logistics of moving packages has changed.

“It’s an opportunity for us to show how great our tech scene is in Canada. There is a lot happening in the logistics space, you don’t have to deal with a 100-year-old carrier that’s been doing things the same way since day one.”

Jasmin Guenette, with the Canadian Federation of Independent Business, is doubtful the smaller companies can fill the gap left during a shut down of the country’s largest shipper during the holiday season.

“It is unclear that these couriers can handle the extra volume that is put on their shoulders because of the strike that we are seeing at Canada Post,” he said.

Guenette added the tech-based courier companies are often only available in large urban centres. “And that's why CFIB is calling on the federal government to intervene rapidly to end the strike.”

Ahuja believes many merchants who signed up with his company won’t return to Canada Post once the strike is over.

“Merchant trust with Canada Post is at an all-time low, and I hear it first hand,” said Ahuja.

“That market share is getting eaten up every single day this strike continues to take place, and I don’t think it’s getting eaten up in a way where they will be able to reabsorb it back.”

“Canada Post is obviously losing a lot of sales and revenues at the moment because of the strike. What will happen after? Nobody really knows,” said Guenette, adding “If Canada Post wants to remain relevant for small businesses and if Canada Post wants to make sure that they are in a position to attract more small businesses as customers, they need to make sure that their services are available when small businesses need them.”