Hermes attacks Austrian Post with low prices
German consumer parcels specialist Hermes Logistik is relying on low prices, a nationwide network and Formula 1 legend Niki Lauda for a successful market entry in Austria. Hermes has created about 1,000 jobs with its operational start this week.
Hermes said that it wants to achieve a market share of 20%, which is about eight million parcels a year, by the end of 2008. Its prices will be up to 60% below those of Austrian Post, and parcels will be priced by size rather than weight.
The company has set up a nationwide network of 1,200 parcel shops and six parcel sorting centres, and taken on 700 delivery staff for its new service. The retail outlets for parcel drop-off or collection are in locations such as newsagents, petrol stations, dry cleaners’ or food stores.
Hermes has gained widespread publicity by signing up the Austrian-born ex-Formula 1 world champion Niki Lauda for advertising purposes. “I’m used to taking on monopolists,” declared Lauda, whose airlines Lauda Air and Niki have challenged Austrian Airlines over the last decade.
