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DHL Launches Parcel Metro Services for E-Commerce, Opening a New Chapter in New Fields

  • Author:Alvin
  • Release Date:2018-03-22

TheGermanyPostal DHL said on March 15 that it will launch online retailer delivery services in eight cities in the United States. This is DHL's competitive service to peers such as UPS and FedEx.

The company said that Parcel Metro Services through DHL e-commerce will be delivered directly from retailers and distribution centers on the same day or the next day.

“This industry (e-commerce) offers tremendous opportunities for the logistics sector,” Lee Spratt, chief executive of DHL e-Commerce Americas, said at the event in San Francisco.

Analyst Helane Becker said she believes Amazon is working with DHL to expand its business in the United States.

"Amazon has grown at an annual rate of over 35%. They need to find a way for buyers to get things. FedEx and UPS have told Amazon that they will not scale, which means Amazon must find a way to support them." Delivery network," Becker said. "This helps DHL's American Center to be located in Cincinnati. This is where Amazon builds its aviation hub. We don't think this is a coincidence."

The chief executive of DHL e-commerce stated that Amazon is a big customer, but the Parcel Metro service is not designed by Amazon.

The company said that DHL has been testing Parcel Metro in Chicago, Los Angeles and New York for the past two years. And said that by the end of 2018, Parcel Metro plans to launch in Dallas, Atlanta, San Francisco and Washington and expect to expand to other cities in the world in the next few years.

Spratt said that Parcel Metro relies on third-party contract delivery companies and APP-based buyers who buy books, shoes, shampoo, and electronic products from retailers, and DHL will deliver the products directly to customers.

At the same time, Parcel Metro will provide 2 hours of delivery on the same day and the next day, and can choose to deliver on weekends. For less urgent e-commerce orders, DHL will continue its long-term delivery of packages to US Postal Service for "last mile" delivery.

No, the Parcel Metro project is a gamble for DHL. Ten years ago, the company lost billions of dollars after failing to expand in the United States.

Parcel Metro follows DHL’s plan announced in the summer of 2016 and will invest $137 million in seven new or expanded e-commerce fulfillment centers in the United States. DHL currently delivers approximately 500 million units annually.