DHL reins in its ambitions in US market
DHL has said it does not want to chase US market share from UPS and FedEx, signalling a reining in of the company’s ambitions in North America. John Mullen, joint chief executive of DHL Express, characterised the company’s plans in the US as “realistic and modest”, insisting it was not “setting out to create another UPS or FedEx”. His comments, at a Bear Stearns investor conference in New York, eased concern that DHL might spark a price war in the US package delivery market after two years of heavy investment. Mr Mullen said the company’s most urgent objective in the US was to improve service quality, which he described as having been “horrendous” last year. Once service improved, DHL would seek to increase prices closer to those of UPS and FedEx rather than cut them, he said. “We’re not driven by market share gains,” said Mr Mullen. “We want to get more value out of the volume we have rather than chase more volume.”
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