Budapest courier service market saturated

With about 100 courier services operating in Budapest and new ones constantly entering the market, fees are going down sharply in a business operating with a profit margin of less than 10pc as it is, a Budapest business paper wrote on Wednesday.

Vilaggazdasag notes that only about 15-20 of the courier services operate with more than 1-5 people, and only the biggest two handle 800-1,000 deliveries/day. However, business for bicycle couriers, the backbone of the service, has been going up, a 10pc rise in deliveries in 2003 compared to 2003, and a 12pc increase in 2004 compared to 2003.

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