DHL scaling up Switzerland operations

DHL provides international courier, parcel, and express mail services Keystone

Swiss Post is facing competition in the booming parcels delivery market. Starting in September, the Deutsche Post subsidiary DHL will supply all private households in Switzerland, the SonntagsZeitung reported on Sunday.

DHL Express mainly supplies companies in the Alpine nation. A newly created company, DHL Parcel Switzerland, will focus on private households, according to the report.

“DHL will massively expand its presence in Switzerland,” Günter Birnstingl, head of the newly founded company, told SonntagsZeitung.

The construction of 1000 collection points – including at petrol stations, pharmacies and bakeries – is planned. The most important partner is the supermarket chain Spar.

The German logistics company also wants to compete with Swiss Post in terms of price.

“We will offer customers a cost advantage over the competition with comparable performance,” Birnstingl continued. However, there will be no dumping prices.

In the conurbations, DHL will offer delivery on Saturdays until 8 p.m. at no extra charge. Swiss Post charges mail order companies extra for this service, with the cost often passed on to customers.

The parcels market in Switzerland has grown strongly in recent years, mainly thanks to online business.

Last year, Swiss Post delivered 130 million parcels – 6.2% more than in 2016. About CHF150 million ($155 million) are being invested in three new parcel centres over the coming years to meet this growing demand.