DHL goes after FedEx, UPS e-comm business
DHL is looking to seize share in the growing U.S. e-commerce delivery market by launching a new service in eight U.S. cities.
DHL's new Parcel Metro service will employ contractors who will make same-day or next-day deliveries from retailers and fulfillment centers directly to homes, the company said.
The new service is now available in Chicago, New York and Los Angeles, and will be launched in Dallas and Atlanta in the second quarter of 2018 with San Francisco to follow in the third quarter and Washington, D.C., to follow before the end of the year.
“Eighty-six percent of consumers associate delivery as part of their total online shopping experience, according to research, thus it’s important for DHL to offer services that not only meet their needs, but do so in a highly consistent fashion.1 DHL Parcel Metro provides that consistency, and offers retailers the ability to extend their brand and messaging to consumers throughout the final mile delivery for a unique shopping experience,” said Lee Spratt, CEO, DHL eCommerce Americas.
DHL’s move to launch U.S. delivery services again could increase competition for both UPS and FedEx, currently the dominant players in e-commerce deliveries in the U.S.
DHL says the new service creates a virtual delivery network of local and regional delivery vendors and crowd-sourced drivers and vehicles to ensure maximum flexibility and capacity over the last-mile. It does this via a bespoke software platform, which selects drivers that offer the appropriate service levels and sufficient capacity on specific routes and which meet the company’s rigorous quality standards.
For consumers, the service creates a seamless experience. Once they place their orders, they can select from a range of delivery time windows – including two-hour, same day and next day – and their preferred delivery destination. A mobile interface – which the retailer can choose to customize with their own branding – allows the end consumers to track shipments in real-time, communicate special instructions to their courier, reschedule a delivery and rate their delivery experience. DHL can bundle fulfillment and Parcel Metro delivery solutions for online retailers.
“E-tailers today recognize more and more that the customer experience – and their ability to build customer loyalty – is won and lost in how well the orders are fulfilled and delivered,” said Charles Brewer, CEO, DHL eCommerce. “Deutsche Post DHL Group is constantly looking for new and innovative ways to offer the best service, quality and efficiency for our customers. The DHL Parcel Metro solution provides a technology solution to the last mile opportunity. Our digitalization journey is all about how we can add value to our customers, to our employees and to our shareholders. DHL Parcel Metro is part of a number of innovations we are actively implementing, including augmented reality glasses for greater pick accuracy, “follow me” robots, and autonomous vehicles.”