Posted by BeauHD
https://tech.slashdot.org/story/25/08/21/1928230/denmark-ending-letter-deliveries-is-a-sign-of-the-digital-times?utm_source=rss1.0mainlinkanon&utm_medium=feed
Denmark's PostNord will end centuries of letter delivery as digitalization and high postage costs make physical mail nearly obsolete. The BBC reports: The steep decline in letter volumes has been driven largely by digitalization, and PostNord announced in March that it will cease letter services at the end of the year. It will bring to an end four centuries of letter deliveries by the state-owned operation. A third of its workforce is being let go, as it sheds 2,200 positions in its loss-making letter arm. Instead it will focus on its profitable parcel business, creating 700 new roles. "Danes hardly receive any letters anymore. It's been going down for years and years," says Kim Pedersen, chief of PostNord Denmark. "They're receiving one letter a month on average, it's not a lot." "On the contrary, Danes love to shop online," he adds. "Global e-commerce is growing significantly, and we are moving with it."
Fifteen years ago, PostNord operated several enormous letter-sorting facilities, but now there's just one on the western outskirts of Copenhagen. Since 2000, the volume of letters the business handles has declined by more than 90%, from around 1.4 billion to 110 million last year, and it continues to fall rapidly. As PostNord prepares to cease letter deliveries, 1,500 of its red post boxes are being removed from Danish streets. However, few locals in the capital appear to use them much.
From email and cashless mobile payments, to digital health cards carried by smartphone, there's an app for almost everything in Denmark - and it's one of the world's most digitalized nations, second only to South Korea, according to the OECD's 2023 Digital Government Index. The Danish government has embraced a "digital by default" policy, and for more than a decade correspondence with the public has been carried out electronically. "We are facing this natural evolution of a digitalized society, earlier than maybe some other countries," Mr Pedersen explains. "In Denmark, we are maybe five or 10 years ahead."
The high cost of sending a letter in Denmark is also a contributing factor behind its decline. In 2024, a new law opened up the postal market to private competition and took away its exemption from the country's 25% rate of VAT, so the price of a PostNord stamp jumped to 29 Danish krone ($4.55) per letter. "That made [volumes] drop even further faster," Mr Pedersen points out. The report notes that private firm DAO will take over nationwide letter deliveries in Denmark after PostNord exits. However, concerns remain that elderly citizens and rural residents may struggle with fewer post boxes and reduced service quality. Both the advocacy group DaneAge and the 3F Postal Union warn the transition could disproportionately affect vulnerable populations.
Read more of this story at Slashdot.
https://tech.slashdot.org/story/25/08/21/1928230/denmark-ending-letter-deliveries-is-a-sign-of-the-digital-times?utm_source=rss1.0mainlinkanon&utm_medium=feed
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