GeoPost sets sights on a global service
GeoPost, the pan-European parcel service owned by La Poste, plans to go global with an intercontinental deferred product in 2006.
Claude Béglé, CEO of GeoPost International, told Transport Logistik the company would seek a partnership approach in mature markets such as the US. But elsewhere, it was prepared to invest.
“South America is under-invested by integrators, ” Béglé said. “We are already having concrete discussions in Brazil, and talks in Argentina and Chile.” China, India and South Africa were among other countries earmarked by GeoPost.
Aproposition from rival Red Parcel Post to offer international delivery from just t2 per package was “smart but pretty risky”, Béglé believed.
Arnold Schroven, chairman of DPD, the German parcel company owned by GeoPost, said such prices were only realistic with big volumes and a base of few, large customers.
“I would be surprised if our cost structure, which is the lowest on the market, is so wrong that our price can go down much further, ” added Béglé.
“We do not ridicule [Red Post’s strategy] but we watch closely what is going on.” He felt the competitive challenge was a different one. “My personal fear is that as some companies go to the US, there might be US companies coming to Europe. If the price goes down it would be because of deliberate attempts by some companies to get the highest market share in Europe off the back of their US business. And there are also strong Asian players.” Abattle for market share in the European parcels industry would mean the profitability of the whole market would decline. GeoPost was keen to avoid a price war, he said.
Nevertheless, price will be a key differentiator for DPD as it launches a 48-hour panEuropean service. Promised later this year, the service will position DPD between the express and deferred marketplace, undercutting traditional express providers.
Béglé said the road/air service would be faster than the company’s existing DPD Guarantee road service, GeoPost’s first uniformly branded Europe-wide product, which currently offers customers guaranteed delivery days for parcels carried across its road network.
DPD Guarantee was launched earlier this year in Germany, Benelux and Switzerland. It was extended to Czech Republic and Slovakia last week and will be rolled out soon in Austria, Denmark, Poland, France and the UK.
DPD is enhancing its road network in eastern Europe with a new corridor between Ostrava and Katowice, and establishing road connections from Turkey, Romania and Bulgaria to Germany.
Direct UK-Spain and UK-Italy linehauls are also in the pipeline.
