Thursday, January 19, 2017

DEUTSCHE POST IS CONFIDENT ABOUT ITS LOGISTICS

Why this $40 billion logistics giant isn't worried about Amazon, Uber eating its lunch

Amazon, Uber, and other rivals will find it difficult to challenge Deutsche Post – one of Europe's largest logistics firms – because they underestimate the complexity of the business, the firm's CEO told CNBC on Thursday.
Amazon has been trialing drones to deliver parcels and has also been opening up lockers where people can pick up their packages. Ride-sharing firm Uber has also touted the potential of its network of drivers to be used for logistics.
Frank Appel, chief executive of Deutsche Post, said that Amazon is an "important partner" and does not underestimate the difficulty of logistics. But many rivals will find it hard to challenge Deutsche Post.
"I think the quality level to get it to the consumer and bring it back is tremendously difficult. It's undervalued because logistics are not visible and I think what we do every night with millions of parcels is completely underestimated," Appel told CNBC in a TV interview at the World Economic Forum in Davos.
"You can call an Uber car, if it doesn't show up you can call another one. If a parcel got stuck, what should the parcel do? It doesn't speak, it doesn't communicate. So some human intervention is necessary."
Deutsche Post has also been trialing delivery by drones and said the technology might not have great potential in the short-term but "potentially" in the medium-term.
"You never know. I think you should prepare for the uncertainty … complexity, uncertainty is good for companies who are willing to deal with that, that creates business opportunities," Appel said.
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