Singapore Post (SingPost), which has been in the media spotlight a great deal lately, announced on Wednesday (3 April) that it will sell two of its US e-commerce subsidiaries following a strategic review.
The businesses to be sold are Jagged Peak and TradeGlobal, without 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 such as Hugo Boss, Tom Ford, Marriott, LVMH and Nespresso.
TradeGlobal provides digital marketing strategies, creative services, omnichannel order management, fulfilment, logistics and customer care for its clients including Calvin Klein, Cole Haan, MCM, Shiseido and Speedo.
In its statement, SingPost said that its non-US business units will not be affected by the divestment.
“SingPost believes its strengths and strategic competitive advantages are in Southeast Asia and (the) Asia Pacific, which provides attractive growth opportunities,” the postal service said in a stock exchange filing.
Singapore Post wants to “better serve our home market in Singapore”, said SingPost CEO Paul Coutts.
“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,” he added.
SingPost has been under fire over a series of lapses that placed them in a bad light among its customers.
In mid-January, SingPost apologised to customers for its “service deterioration” due to a “tremendously busy” November to December period.
Just two weeks later, a postman serving areas in Ang Mo Kio was arrested after a resident found unopened mail in a rubbish bin, prompting an investigation from the Info-communications Media Development Authority (IMDA).
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. It was later fined another S$300,000 the following month for the same reason in 2018.
In response, SingPost announced new measures aimed at beefing up standards, including the cutting back on advertisement mail delivery and improving staff remuneration.
Senior Minister of State for Communications and Information (MCI) Sim Ann said in Parliament in February that regulatory standards for the delivery of parcels and registered articles are in consideration by the Government.