Deutsche Post rivals have no plans to lower parcel prices
German postal services provider Hermes has said that it will not alter its prices in response to the announcement last week that former monopolist Deutsche Post is to reduce postage on small parcels. Management at Hermes said that it saw no reason to change its successful strategy in its activities with private customers and declared that Deutsche Post’s decision to lower prices was proof that competition on the market existed. GLS, a subsidiary of UK group Royal Mail, also has no plans to lower its prices.
From May 4, the cost of sending a parcel weighing under 2kg in Germany with Deutsche Post will fall form 4.30 euros to 3.90 euros. This is the same price as offered by Hermes. However, Deutsche Post’s rivals also provide insurance and tracking services, which they say renders a price comparison meaningless. There have also been renewed calls for Deutsche Post to pay turnover tax, from which it is currently exempted. The government is set to increase the tax by 3 percentage points, which rivals feel would further distort competition.
Abstracted from Handelsblatt
