Correios, Brazil’s state-owned postal company, is looking to diversify. This week, newspaper Folha de S. Paulo reported that the post office has a plan to branch out into the on-demand delivery market, competing with popular existing services such as Uber, and regional frontrunners iFood and Rappi.
Details of the project are still sparse and being debated internally—it is unclear whether the company is looking to take these competitors head-on with food deliveries, or partner with them and offer a complementary on-demand package delivery service—but it signals towards an attempt to drag Correios out of a desperate financial hole.
The company remains in severe financial trouble despite a positive result in 2017 and expectations of profit when 2018 figures are released. In 2015 and 2016, Correios suffered billionaire losses and is grasping for long-term solutions in what is a changing market.
The company is over 356 years old and has been a state-owned institution for half a century, since when it has held the monopoly...
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