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When Speed Post was started in 1986, it heralded a new era in the express market in the country. In a short span of time, speed post became the catchword of every household and every business in India. However, in the course of time, the market became quite competitive and the market share of speed post started declining. According to the recent market survey the market share of Speed Post is less than 10%. While the private couriers have focused a lot on providing reliable collection facilities from the premises of the customers. Speed Post fell short in this critical area. In spite of the vast booking network provided by Speed Post it was lacking in the provision of door-to-door collection. The infrastructure and the number of staff available for speed post collection is quite inadequate in many centers adversely affecting the collection system. The union agreed with India Post that it required a major initiative to strengthen the collection process and to gain market share.
In the courier industry, collection from the customer's premises is the norm, as it provides convenience to the customers. It was agreed that unless India Post provided door-to-door collection, many customers, especially the corporate customers, would stay away from the Post network. With all these considerations in view and to undertake aggressive marketing strategy to gain maximum market share it was agreed that the collection system would be outsourced in Delhi & Mumbai to start with. There was also agreement about who could be appointed as collection agents. Collection agents will be appointed for a particular locality or a group, of localities depending on the logistics of the city as well as business potentiality from that locality and the individuals appointed as collection agents have to meet stringent criteria.