Parcel Powers

Fighting to Deliver

DHL racing car sponsor logo flames Source imago 10644553
DHL is shifting into higher gear to tackle increased competition from Hermes, UPS and other parcel delivery firms.
  • Why it matters

    Why it matters

    Results at mail and parcel delivery firm Deutsche Post DHL might suffer if rivals expand their market share in Germany’s parcel delivery business.

  • Facts


    • Deutsche Post DHL is facing increased competition in the parcel delivery market from U.S. express giant UPS, French-owned DPD and Hamburg-based Hermes.
    • Deutsche Post DHL is trying to cut costs by offering lower wages to new employees.
    • Rival parcel delivery firms, such as Hermes, are facing higher costs due to a new minimum wage of €8.50 ($9.61).
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Competing against mail and parcel delivery group Deutsche Post DHL is tough. Just ask Hanjo Schneider, the head of Hermes, Germany’s second largest parcel courier.

German market leader Deutsche Post DHL, which competes with FedEx and United Parcel Service, can practically dictate the price ceiling for delivering packages in Germany, Mr. Schneider told Handelsblatt.

As a former mail monopolist, Deutsche Post DHL still runs the biggest door-to-door delivery network in Germany, giving it a competitive advantage:  It can entrust hand delivery of 70 percent of packages to its own mail carriers, instead of sending out its parcel deliverers.

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