Amazon increasingly pushes into the delivery market, encroaching on the territory of pioneer Deutsche Post. According to the Federal Network Agency, Amazon is the second-largest provider in the parcel sector alongside Deutsche Post DHL. As a result, the market share of the US giant has increased between 15 and 25 percent in terms of shipment volumes. Other courier services such as DPD, GLS, Hermes, and UPS share the fiercely competitive market with a share of five to 15 percent. While Deutsche Post still transports Amazon packages, the online retailer continues to expand its own delivery networks.
Nevertheless, DP DHL remains the undisputed market leader with a market share of over 40 percent. In 2022, Deutsche Post transported 4.25 billion packages, and a growth of 3.35 percent to 4.39 billion packages is expected for the year 2023, according to forecasts.
According to Klaus Müller, the head of the Federal Network Agency, online trade continues to advance, leading to significant growth in the parcel sector. In contrast, the volume of mail sent in the letter market, which is dominated by the post office, is shrinking due to advancing digitalization. In 2022, 11.93 billion letters were sent in Germany, which corresponds to a decrease of 2.24 percent compared to the previous year. Müller emphasized that this trend seems to be irreversible.
The Ministry of Economy plans a new Postal Law, which is set to be adopted by the Federal Cabinet in December. This law gives the Post more time for the delivery of letters, while at the same time ensuring that consumers can be reached reliably. According to the plans, the Federal Network Agency shall receive more competences and be able to impose higher fines as well.
The regulator expects over 40,000 citizen complaints on postal issues in 2023, comparable to the previous year when 43,152 submissions were received.
The plans for a new postal law are welcomed by the Federal Network Agency. In pre-market trading on NASDAQ, Amazon's stock temporarily increased by 0.17 percent to 147.73 US dollars.
