Israel Postal Company

Israel Postal Company, commonly operating under the Israel Post name, is Israel's national postal operator. Its roots lie in the postal system established during the British Mandate, although the modern institutional history of the organization begins with the Israeli state's assumption of postal responsibility after independence. The company provides the infrastructure through which letters, parcels, registered items and other postal articles move across Israel, while its branches also function as public-facing service points for financial transactions, identity-related services and selected government or commercial activities. After the establishment of Israel in 1948, postal services were placed under the Ministry of Transportation. A dedicated Ministry of Postal Services was established in 1951 and later became part of the Ministry of Communications. The scope of the public postal system historically extended beyond letters and parcels to include telegrams, telephone services and a postal bank. The Postal Bank, which remains associated with Israel Post, offers payment and money-transfer services but is not permitted to conduct ordinary lending or other credit activities. The Israel Postal Authority was created in 1986. Persistent operating losses, political controversy and technological change led to a restructuring of the sector in the early 2000s. A government company, Israel Postal Company Ltd., was established and began operating in March 2006, replacing the authority structure. The transition was intended to give the postal operator a more commercial basis while preserving universal postal services. The company subsequently pursued branch, staffing and technology changes as electronic communications reduced traditional letter volumes and parcel and retail services became more important. Israel Post has maintained a nationwide network of branches, delivery staff, mailboxes and vehicles. Reference material describes approximately 700 branches, about 4,262 mailboxes and roughly 1,000 mail trucks, with around 5,000 employees during the period discussed. Approximately 2.5 million postal items were sorted daily. These figures describe the scale of the network rather than a guaranteed current operating profile, which has changed through restructuring and privatization. Operational reform intensified during the 2010s. The company announced reductions in staffing and delivery frequency, closed some branches, extended opening hours at others and introduced online and app-based appointment booking to address long waiting times. It also upgraded retail-management technology through a 2013 agreement involving Escher's Group Riposte platform. In 2023, a recovery plan included branch closures and a reduction of approximately 1,000 employees. Reported first-half results improved substantially compared with the previous year, although the business remained subject to public-service obligations and regulatory oversight. Israel Post was privatized in 2024. A consortium led by Milgam won the tender for NIS 468 million, with Phoenix-related entities and Layman Schlissel as the other named participants. The transaction was completed on 14 November 2024 after competition-related conditions were imposed. Following completion, chairman Mishael Vaknin announced his resignation. Israel Post therefore entered a new ownership phase while continuing to perform the functions of Israel's principal postal network.

Israel's postal system predates the state and developed from services operated during the British Mandate between 1920 and 1948. When Israel declared independence in May 1948, the British postal administration ceased operating and the new state had to establish a functioning service under severe practical constraints. The Ministry of Transportation initially assumed responsibility. In 1951, Israel created a Ministry of Postal Services, later incorporated into the Ministry of Communications. The public system handled letters, parcels and telegrams, and at various stages was also connected with telephone services and a postal bank. The Postal Bank opened in 1951 and became an important part of the branch network. Its activities include ordinary customer accounts, payment instruments, money transfers and standing orders, but it is not authorized to provide credit in the manner of a commercial bank. Postal branches consequently served both delivery and basic financial functions. The Israel Postal Authority was established in 1986. By the early 2000s, traditional postal operations were experiencing financial pressure, while electronic communication and changing consumer behavior challenged the established model. The authority also faced political controversy and criticism concerning appointments and administration. Reported losses reached NIS 150 million in 2002 and NIS 200 million in 2003. These pressures prompted a major reform program and the creation of Israel Postal Company Ltd. as a government company. The new company began operations in March 2006. The corporate structure was intended to improve commercial discipline while retaining a nationwide service obligation. During the following years the company sought to modernize its retail network and respond to changing demand. In 2013 it agreed to deploy Escher's Group Riposte retail software. In 2014 it announced a substantial workforce reduction, reduced regular mail delivery to twice weekly, closed selected branches and extended hours elsewhere. Online and mobile appointment booking was added in 2015 to address long queues. Public criticism remained significant. State Comptroller reports in 2015 and 2019 identified unusually high levels of justified complaints involving Israel Post, including concerns about the quality and reliability of service. The business also continued to restructure as letter volumes declined and parcel logistics became more important. A recovery plan in 2023 included branch closures and the removal of approximately 1,000 positions from a workforce of about 5,000. The same year, the company reported improved first-half financial results under chairman Mishael Vaknin and chief executive David Laron. The company's general operating license was updated in February 2023. In 2024, the state completed the process of selling Israel Post. A consortium led by Milgam, joined by Phoenix Insurance Company, Phoenix Pension and Provident, and Layman Schlissel, acquired the company for NIS 468 million. The Competition Authority imposed conditions relating to the use of Rav Kav information and the establishment of a printing press. Completion took place on 14 November 2024, after which Vaknin announced his resignation as chairman. Israel Post consequently moved from government ownership to private consortium ownership while continuing to operate Israel's nationwide postal network.

• 2024

  Privatization completed

  [1]Israel Postal Companyen.wikipedia.org

  A Milgam-led consortium completed the acquisition of Israel Post on 14 November 2024 for NIS 468 million.

• 2023

  Recovery plan produces reported interim improvement

  [1]Israel Postal Companyen.wikipedia.org

  The company combined workforce and branch reductions with operational changes and reported a first-half profit after a loss in the prior-year comparison period.

• 2015

  Digital appointment booking introduced

  [1]Israel Postal Companyen.wikipedia.org

  Customers gained the ability to schedule branch appointments online or through an application.

• 2014

  Delivery and branch restructuring announced

  [1]Israel Postal Companyen.wikipedia.org

  The company announced staffing reductions, twice-weekly mail delivery, branch closures and longer opening hours at selected locations.

• 2013

  Retail software modernization agreement

  [1]Israel Postal Companyen.wikipedia.org

  Israel Post signed an agreement to deploy an updated Riposte retail platform from Escher's Group.

• 2006

  Israel Postal Company begins operations

  [1]Israel Postal Companyen.wikipedia.org

  Israel Postal Company Ltd. began operating in March 2006 as a government-owned company following reforms prompted by losses and organizational criticism.

• 1986

  Israel Postal Authority created

  [1]Israel Postal Companyen.wikipedia.org

  The Israel Postal Authority was established as the principal institutional framework for the country's postal services.

• 1951

  Ministry of Postal Services and Postal Bank established

  [1]Israel Postal Companyen.wikipedia.org

  A dedicated postal ministry was created, and the Postal Bank began operating as part of the public postal system.

• 1948

  State assumes responsibility for postal services

  [1]Israel Postal Companyen.wikipedia.org

  Following the end of British postal administration and Israel's independence, the Ministry of Transportation took responsibility for national postal services.

National postal infrastructure and public-service network

• Postal services

  Mail delivery

  Israel Post provides the country's core letter and document-delivery infrastructure, including ordinary and registered mail. The service historically formed the center of the business, although electronic communication and changing customer behavior have reduced the importance of traditional letters. The company operates sorting, delivery and branch networks to connect households, businesses and public institutions across Israel.

• Logistics

  Parcel and express delivery

  Parcel services support domestic delivery and international postal traffic, including the growth of online commerce. Israel Post's branch network provides customer drop-off and collection points, while its sorting and transport infrastructure handles parcels alongside other postal items. Specific product names, service-level definitions and current pricing are not established in the supplied references.

• Postal banking · 1951

  Postal Bank

  The Postal Bank is operated as part of the Israel Post network and supervised under the postal-services framework. It maintains customer checking accounts and supports checkbooks, debit cards, money transfers and standing orders. Its mandate does not include general credit activity, so it functions as a payment and transaction service rather than a conventional lending bank.

• Philately · 1948

  Israel Philatelic Service

  The Philatelic Service issues and distributes Israeli postage stamps and related collecting material. Israeli philately began with the Doar Ivri stamps issued immediately after independence in 1948, when paper, printing equipment and even the final form of the country's name were unsettled. The service later operated from Tel Aviv and moved to Pinsker Street in late 2019.

• 2019

  Continuing public dissatisfaction documented

  A subsequent State Comptroller report said the number of complaints had increased and again identified Israel Post as the audited body with the highest proportion of justified complaints in the cited period.

  Source

• 2015

  State Comptroller criticism of complaint handling and service

  The State Comptroller reported that complaints against the Postal Company had the highest proportion of justified findings among the bodies covered in the cited review, reflecting persistent concerns about service performance.

  Source

• Political appointment controversy

  The former Postal Authority was criticized as a setting in which politically influenced appointments had become widespread. Judicial commentary cited in reference material characterized the problem as recurring across successive ministerial periods.

  Source

Read more

• 2024

  Complete privatizationM&A

  Background

  The government sought to transfer ownership of the formerly state-owned postal company through a competitive tender.

  Action taken

  A consortium comprising Milgam, Phoenix Insurance Company, Phoenix Pension and Provident, and Layman Schlissel acquired Israel Post for NIS 468 million. Competition approval required safeguards concerning Rav Kav information and a potential printing press.

  Aftermath

  The transaction closed on 14 November 2024, and chairman Mishael Vaknin announced his resignation afterward.

  Acquisition price. NIS 468 million (2024 privatization tender)

  Source

• 2023

  Implement a recovery and workforce-reduction planStrategy

  Background

  Israel Post faced continuing structural pressure and needed to improve its financial position under an updated operating-license framework.

  Action taken

  The company closed branches and reduced its workforce by approximately 1,000 employees from a total of about 5,000.

  Aftermath

  In the first half of 2023, reported revenue reached NIS 849 million and profit reached NIS 29 million, compared with a NIS 176 million loss in the corresponding period of 2022.

  Revenue and reported profit. NIS 176 million loss in the first half of 2022 → NIS 849 million revenue and NIS 29 million profit in the first half of 2023 (First half of 2022 versus first half of 2023)

  Source

• 2015

  Launch online and mobile branch appointmentsProduct launch

  Background

  Long queues and complaints about branch service created pressure to improve customer flow.

  Action taken

  Israel Post introduced the ability to make branch appointments through its website or an application.

  Aftermath

  The feature became part of the company's customer-service modernization efforts.

  Source

• 2014

  Reduce delivery frequency and restructure the branch networkStrategy

  Background

  The company was responding to financial pressure, changing communication habits and the need to reduce operating costs while preserving customer access.

  Action taken

  It announced twice-weekly mail delivery, a workforce reduction, selected branch closures and longer hours at some remaining branches.

  Aftermath

  The measures were followed by additional efforts to manage queues, including digital appointment booking in 2015.

  Source

• Unconfirmed

  Reported2020.07.07

  Israel Post launches a mobile phone package with Golan Telecom[2]以色列邮政与Golan Telecom推出手机套餐postandparcel.info

  Israel Post began offering its first mobile phone package together with Golan Telecom. The plan was to be sold at 90 post office branches, and customers of any mobile operator could switch to it by registering at a post office and paying a one-time NIS 19 SIM-card fee.

Read more

1. 1Israel Postal Companyen.wikipedia.org
2. 2以色列邮政与Golan Telecom推出手机套餐postandparcel.info