High price to pay for cheap courier delivery

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The ongoing price war could be self-defeating for many companies. They have to sacrifice salaries and quality; and the company in the viral video has seen its business plummet.PETALING JAYA: A viral video, showing workers tossing parcels around at a courier hub in Ipoh in an apparent strike has led to concerns about the business as a whole.The rise of e-commerce and free shipping on orders above a certain amount, combined with the popularity of online shopping during the movement control order (MCO), has seen an explosion in parcel volume – with Pos Malaysia alone estimating it handles up to 800,000 parcels a day during peak season.However, with 109 courier firms in the market as of last October, the ensuing price war has seen some players struggling to cover costs – with labour costs the biggest outlay.Calling the incident an “embarrassment” for the industry, Association of M…