Despite Monday's Upper House rejection of the bills to privatize Japan Post, the organization is expected to step up its door-to-door parcel delivery business, analysts and industry insiders say.
"For its survival, it has to expand businesses other than standard mail and postcard delivery," said Osuke Itazaki, transport analyst at Credit Suisse First Boston Securities (Japan). "For that reason, it eventually has to aggressively pursue parcel delivery and other logistics businesses."
Japan Post's standard mail and postcard service has been on a decline as more people communicate via e-mail and other electronic means.