With “Parcel Metro” service, DHL looks to be big fish in fast-growing delivery pond
What DHL brings to the table is its technology and, perhaps more important, its global brand. The U.S. last-mile parcel market is both embryonic and hodge-podge-like, with startups like New York-based Deliv vying for share along with other eager pros and a De-Mille like cast of citizen drivers looking for a piece of the e-commerce action. By muscling into the nascent segment, DHL wants to build credibility with the retailers that choose delivery methods, as well as attract a critical mass of qualified drivers to cover as much geography as possible.
But those bonds will only go far in persuading Amazon to use the Parcel Metro service, according to Satish Jindel, founder and president of consultancy SJ Consulting Group Inc. Amazon would use Parcel Metro if it can deliver reliable service at the lowest price. Should service falter or be priced beyond what Amazon deems acceptable, the e-tailer will go somewhere else, Jindel said. “These are not marriage vows,” he said in an interview Friday.
The DHL service is also likely to take aim at the U.S. Postal Service’s “Parcel Select” operation, where big retailers, parcel consolidators, and carriers tender large consolidations deep into the postal system for deliveries by letter carriers. Parcel Select grew by 14.4 percent in USPS’ fiscal first quarter, which included the peak holiday shipping season. However, USPS has warned that the business could be negatively impacted if Amazon, UPS Inc., and FedEx Corp., its three heaviest users, expand their networks to offer similar services and siphon off business from USPS.
Last April, FedEx and UPS rolled out pricing initiatives geared to ultra-short-haul deliveries. The companies planned to price the services cheaply because they wouldn’t involve the use of over-the-road line-haul operations, which add to their costs. Jindel, who is familiar with the initiative, said the carriers have moved too slowly in building out the programs, however.
The postal employees that hate the Postal Service, the unions, and spend every day bragging on how much better the private co’s are, should have quit long ago! I’m sure you would to work in a union free environment. You would be treated so much better and be a millionaire by now. You would have more time to research stock and have more wealth.
stop crying and whining, we postal employees don’t hate the postal service, if management loses package business, that’s their problem, not us workers, hell I will join Amazon when I retire in the next 16 months. The Post Office will kill their own brand, not the workers. The post office failed for the 3rd year in a row on parcels during the holidays. Supervisor scanning amazon packages delivered that had not left the building or not even given to the carrier. Amazon will buy Toys r us bldg. and turn them into Amazon mini distribution centers, who knew.
It won’t be management that loses the parcel business, it’s be the employees that throw packages on to porches, it’ll be the massive overhead from employing so many people instead of machines and it’ll be the employees who milk out every second of overtime they can get rather than get the mail delivered
oh baby…..Postal Circus will be on top when the dust settles………April fools day lol………..turn out the lights, the party is over. UPS/FDX/AMZN stock and the DRIP will make my retirement sweet…….to think I came in 32 years ago, looked around, was horrified at what I saw and started buying FDX @ 12 bucks……….then UPS………and after they put Barnes and Noble & Borders Book Store on the ropes AMZN………..do you have any idea what 500 shares of AMZN are worth.Boeing, Exxon-Mobil etc……thing is when you research stocks to buy, the really great companies all have one thing in common…..great management. corporate reports and conference calls tell you what you need to know. 11 years of losing money like PO not so much.
I bought stock in th P.O. now I’m sitting pretty watching UPS deliver my good. Cha cha cha.
You bought stock in the post office eh? Got a garage full of forever stamps do you?