The privatization of Israel Post has been approved: what is actually going to happen?

by time news

After years of problematic service to say the least, the privatization of the Israel Post is underway and within a year the state will no longer hold on to it. More on the menu: the transition of many services to digital and the closing of branches

Israel Post. Photo: Giktiim

How much fun it is for all of us to shop online with an international feeling, as soon as our package arrives in the mail – the familiar feeling of Israeliness returns. With lateness, poor service, lack of transparency and lack of competition, no one wants to mess with the mail, but this is the mail we have. Today (Thursday), the Ministry of Communications and the Ministry of Finance reached an agreement with the Postal Administration and the Workers’ Committee ahead of the full privatization of the Israel Post – and with it some good news for all of us.

Another 18 months – all in digital

By the end of 2022, 40% of Israel Post will be issued to the stock exchange, with an additional 60% to be purchased by a strategic private investor – which means that in practice Israel Post will be privatized by mid-2023 if all goes well. As part of the same process, about 1,500 postal workers will receive early retirement in 3 installments by the end of 2023 (a plan estimated to cost $ 1.5 billion to be funded by the state and the realization of real estate assets of the post office). The person who will be responsible for the transition of Israel Post to being an issued public company is David Laron, former deputy CEO of Shufersal.

But we are here for the service improvements. Israel Post claims that within 18 months most of the postal operations and the post office bank will be available in the postal app, so you will not even have to go to the branch. In addition, the Israel Post app will become a kind of national payment portal, so you can pay all your bills in one place. In addition, you can receive updates on mail and packages sent to you, and send registered mail without reaching the branch.

This is what the mail app will look like

The joint announcement between Israel Post and the Ministry of Communications today states that there will also be removals of regulatory restrictions, and our investigation shows that, among other things, the post office can adapt to needs in reality so that branches can be open according to demand and not hours. As part of the reform, post offices will be closed, but we were told that the remaining branches (called “flagship branches”) will be much better and at the same time service points will be opened (for cash transactions, receiving payments and delivering parcels and letters) in supermarket chains, agencies Dedication of packages for small businesses and networks. Also, in 85% of cases you will be able to determine the pick-up location of the package you ordered, with the post office opening hundreds of additional delivery centers.

If you use Israel Post services to send parcels, letters and registered mail, then we are currently sorry, but after the privatization by mail we claim that they will allow services such as frontal representative to the house, collection of packages, letters and registered mail from home and more. Please note, however, that this service will be offered as a premium service at an additional cost. However, for the older population, the service will likely be offered free of charge.

The corkscrew does it again

The Minister of Communications, Yoaz Handel, managed to get rid of quite a few bureaucratic traffic jams during his tenure. Among other things, he managed to allow Bezeq and Zeut to launch a “reverse bundle”, until the split between the provider and the Internet infrastructure completed this week, and of course he also signed the steps that led Bezeq to launch its fiber optic service and establish the “Universal Fund” that encourages other players to deploy infrastructure. In places where Bezeq is not interested in deploying. Now, he has also signed on to privatize the Israel Post, although in light of recent political developments, he may see it from a distance.

Minister Handel said today that “After years of neglect, we are doing essential root canal care for the post office. It is well known that the post office suffers from diseases that have not been treated for years, such as an excess of manpower, inefficiency that every citizen has felt in his flesh, and regulation that has burdened society. To date, the state has poured millions into the postal company whenever the company has been in difficulties and this without addressing the challenges and administrative and organizational problems of the company. Today begins a new era in postal services in Israel. There will be difficulties along the way, but at the end of the process the public will enjoy excellent and advanced postal services. ”

A good old age

Born with a joystick in hand. He has far too many gadgets and far too little free time to play with them all. An unexplained hammer holder for calibrating device batteries. When he’s not busy writing about technology, he likes to talk about it, and a lot


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