Hermes plans B2C service in Austria
Hermes Logistik, the German B2C parcel delivery subsidiary of German retailer Otto Group, is reportedly planning to set up its own service in Austria in competition to Austrian Post.
The Otto Group has cancelled its contract with Austrian Post for domestic delivery of parcels from its subsidiaries Otto Austria and Universal, German newspaper Die Welt reported, citing Austrian Post sources. These two companies alone could account for 10 million parcels a year, or about 25% of the country’s total B2C parcel market, it wrote.
Instead, Hermes Logistik would set up its own network to distribute parcels of the Otto Group companies, which focus on fashion and electronic, from this spring, Die Welt reported. Hermes could set up a network of ParcelShops like in Germany as alternative drop-off and collection points. The company was also in talks to take over parcel delivery for mail-order group Quelle in Austria, it added.
Hermes declined to comment on its plans for Austria, Die Welt said. However, the company already said last year that it aims to create a European B2C distribution business, and was considering entering markets such as Italy, Spain or Austria.
In Germany, Hermes Logistik has grown rapidly in recent years and now has a share of about 24% of the B2C/C2C market, according to CEP-Research information. It expanded beyond domestic distribution last autumn with the launch of deliveries to European destinations through a partner network.
