NZ Post remains a state owned enterprise but operates efficiently and provides reliable service. There are competitors but postal services tend to be a natural monopoly where the service can be most efficiently provided by one operator. With the rise of online shopping parcel deliveries become hugely important and allowing a private monopoly could be tantamount to allowing private interests to tax the entire online shopping sector. Delivery of letter has been in decline globally for decades with the rise of the internet creating a major challenge for all postal services. While state owned enterprises require skillful management it can be done. NZ Post has had to invest huge capital to modernise and remain competitive- part of its success may be due to the apparent success in isolating it from political agendas and supporting its development. Privatising natural monopolies can result in negative consequences for the wider economy.