Israel Postal Service Imposes Higher Courier Rates on Remote Businesses

Customers in peripheral locales to pay 50% than more than central area residents for the same service

Eli Ashkenazi
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Eli Ashkenazi

Companies subscribing to Israel Post's "business to business distribution" courier service are being charged as much as 50% more beginning this month – but only those located outside the country's main population center. Rates were previously uniform throughout the country.

Businesses in 50 localities such as Jerusalem, Tel Aviv, Kfar Sava and Kafr Qasem will continue paying NIS 26 before value added tax on 50 to 100 items per month. But those in places like Rehovot, Hadera, Haifa, Tiberias and Nazareth will be charged NIS 28 for the same service, while businesses in remote locations like Eilat, Safed, and Kiryat Shmona will need to pay NIS 30.

The price soars to NIS 39 for smaller localities in the furthest regions although the service offered there remains inferior: It will still take three business days for packages to arrive at their destinations, according to the national postal company, while those sent from other less remote regions are delivered the following business day.

Courier services offered by Israel's postal company is exposed to competition and therefore isn’t subject to government regulation.

"Israel Post offers its customers the best price in the market," responded the government-owned company. "It was decided to change the way pricing is set according to travel distances due to discrepancies between the inputs invested for each delivery and the existing price."

The Communications Ministry explained that the service is limited to subscribers, subject to full competition, and that its rates aren't set by the government.

"Would it ever occur to you to send a courier across Israel just to deliver an eight-word message?" asks Israel Postal Company Deputy CEO Herzl Bar-Mag.Credit: Bloomberg