German Logistics Firm DPD Joins In, Launches Same-Day Delivery

Other countries have companies that are in hot pursuit of same-day delivery. It’s not hard to think of as we consider what is happening in our own. In the US, retailers such as Wal-Mart, Amazon, Google, eBay and others are racing to offer same-day courier services to their customers. London-based delivery company Shutl, was just bought by eBay, as the retail giant strives to service the UK more effectively online. Yet, the same is happening with logistics companies abroad.

Reuters recently reported that German logistics firm DPD has announced it will be launching same-day delivery in 19 different German cities. DPD will be partnering with courier service Tiramizoo to bring the highly sought-after service to pass in those areas. This is quite a move by DPD, yet is shows just how much same-day delivery has captured the attention of the world. DPD did not state the timeframe in which same-day delivery will be implemented in the cities, however, with so much opportunity regarding online business and competition growing globally, it will probably move fast.

The main driver for the logistics firm stepping into the same-day delivery game is to give brick-and-mortar retailers a way to compete with dominating online retailers, such as Amazon. Boris Winkelmann, chief operating office of PDP, stated in the report, “This service will help traditional retailers which are going into e-commerce to differentiate themselves from pure online players. This service allows them to generate an advantage from their store network". Physical retail stores have to create a way to compete. Otherwise, online retailers will continue to take market share and expand. Business trends and technology is changing, therefore, retailers must change along with it or get left behind.

DPD now has 20% of the stake holding in the Tiramizoo. The same-day courier already delivers goods for German online retailer Conrad and testing delivery of electronics for Metro’s Media Market electronics chain. Instead of DPD taking on creating same-day delivery, they decided to invest in a courier that already knows what they are doing, which creates a platform for quick implementation. Other delivery companies have begun same-day delivery, such as Fed Ex and the US Postal Service. This shows that the direction of technology is shaping a business world where time can be maximized and speed of deliveries means being a step ahead of the competition.

The logistics firm does expect for the same-day delivery service to be used for more expensive goods, such as electronics and high-end fashion. The cost to provide the service will begin at an additional 8.50 Euros, which equates to $11.50. The price is different from what Germans are used to said Winkelmann in the report. They are used to delivery being free. Although this is changing, DPD foresees it will be successful. More brick-and-mortar retailers will probably jump on board in Germany and partner with DPD to grow their e-commerce business segment. Many companies in the US have made different moves to get their e-commerce business to grow, such as Target and Best Buy working with eBay to have their products delivered from physical stores.

DPD recognizes that online business is the direction the business world is headed toward. As a logistics company, DPD is in a position to partner with retail companies and help them. Retailers in the US can partner with a Same-Day Courier like A-1 Express and implement same-day delivery nationwide as well. This New York Courier is an expert at same-day delivery and can create a logistics solution to meet a retailer’s online demand. A-1 Express can quickly implement same-day delivery and help physical retailers compete, especially in the upcoming holiday season.

Reference: 11.7.13, Reuters, German logistics firm DPD launches same-day delivery