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SingPost to sell US e-commerce subsidiaries following strategic review

SingPost to sell US e-commerce subsidiaries following strategic review

File photo of a Singapore Post delivery van.

SINGAPORE: Singapore Post (SingPost), which has been in the spotlight over a series of lapses, said on Wednesday (Apr 3) that it will sell two of its US e-commerce subsidiaries following a strategic review.

"SingPost believes its strengths and strategic competitive advantages are in Southeast Asia and Asia Pacific, which provides attractive growth opportunities," the postal service said in a stock exchange filing.

The businesses it will sell are Jagged Peak and TradeGlobal, said SingPost, without providing a valuation for the units.

Jagged Peak provides end-to-end e-commerce solutions with software and services that enhance the scalability and profitability of omnichannel businesses, SingPost said. Hugo Boss, Tom Ford, Marriott, LVMH and Nespresso are among its clients.

TradeGlobal provides digital marketing strategies, creative services, omnichannel order management, fulfilment, logistics and customer care. Its clients include Calvin Klein, Cole Haan, MCM, Shiseido and Speedo.

READ: SingPost customers may soon receive SMS alerts half an hour before delivery

SingPost said in its statement that its non-US business units will not be affected by the divestment.

"Arising from the strategic review, we will step up our investment to better serve our home market in Singapore, as well as leverage our competitive advantages in Asia-Pacific," said SingPost CEO Paul Coutts.

READ: SingPost to reduce postmen's workload in move to improve service standards

READ: Singapore considering delivery standards for parcels, registered mail: Sim Ann

SingPost has been in the spotlight recently due to a spate of lapses.

In mid-January, SingPost apologised to customers for its "service deterioration", citing a "tremendously busy" November to December period for its poor service quality.

Just two weeks later, a postman serving areas in Ang Mo Kio was arrested after a resident said she found unopened mail in a rubbish bin, prompting the Info-communications Media Development Authority (IMDA) to investigate the matter.

READ: Commentary: Are SingPost’s lapses indicative of a deeper malaise in the company?

In February, SingPost was fined S$100,000 by the IMDA for not meeting the service standards for delivering local basic letters and registered mail in 2017.

In response, SingPost announced new measures aimed at beefing up standards, including the cutting back on advertisement mail delivery and improving staff remuneration.

It was fined another S$300,000 in March for not meeting the service standards for delivering local basic letters, international basic letters and registered mail in 2018.

Senior Minister of State for Communications and Information (MCI) Sim Ann said in Parliament in February that the Government is considering setting regulatory standards for the delivery of parcels and registered articles.

Source: CNA/aj(mi)


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