URGENT UPDATE: The fiercely competitive metro parcel delivery market is leaving rural Australians behind, according to Australia Post CEO Paul Graham. As businesses rush to capture the lucrative metropolitan market, rural areas suffer from a lack of delivery options, with significant implications for local residents.
Just announced, Graham revealed that Australia Post is actively investing $1.5 billion over four years to enhance services in regional and rural regions. Despite these efforts, the company faces intense pressure from emerging gig economy delivery services that prioritize urban areas.
“Companies like iMile and Dragonfly Shipping have surged onto the scene, leveraging platforms like Amazon and Shein, but they typically ignore rural deliveries due to low volume,” Graham stated. “The vast majority of parcels are targeted at major metropolitan areas, where delivery density is highest.”
As the trend continues, customers in rural locations have taken to social media platforms like Reddit to express frustration over poor delivery services from these new entrants. While Dragonfly Shipping claims that 70 percent of Australian addresses fall within its service range, rural residents are often left without options.
In a recent financial report dated August 29, 2025, Australia Post announced a pre-tax profit of $18.8 million with group revenue reaching $9.45 billion. While Graham acknowledged that this profit is modest, it represents a significant recovery from previous losses of $200 million two years ago and $88 million last year.
“It’s a strong result in a very difficult market, which shows we are holding our own in the parcel business, although it’s incredibly competitive,” Graham added.
Moving forward, Australia Post will continue to focus on strengthening services in underserved communities. Graham emphasized, “We have the largest network in Australia and are proud to extend services into regional, rural, and remote areas.”
This urgent situation raises significant questions about the future of parcel delivery in rural Australia, as the gap widens between urban and rural services. With the market dynamics shifting rapidly, residents are left wondering how long they will have to wait for reliable delivery options.
As the battle for parcel delivery supremacy intensifies, all eyes will be on Australia Post’s next moves to bridge this widening gap and cater to the needs of rural Australians.
Stay tuned for further updates on this developing story.
