DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5

DHL Stops Deliveries For Amazon Fresh In Germany

By Dayeeta Das
Share this article
DHL Stops Deliveries For Amazon Fresh In Germany

Deutsche Post DHL will no longer deliver fresh food in Germany for Amazon as demand for the service launched in 2017 has been disappointing, a spokeswoman said on Wednesday.

Selling food is a key part of the strategy of the world's top online retailer, especially since it bought the US chain Whole Foods in 2017, but its Fresh service, launched in 2007 in Seattle, has grown much slower than the rest of the business.

A spokeswoman confirmed a report in Germany's Lebensmittel Zeitung trade publication that DHL was ending its cooperation with Amazon Fresh, adding the rest of its business with Amazon was unaffected.

'Behind Expectations'

"The market for online ordered fresh food has been far behind expectations to date. Due to this reason and the complexity of the whole process, we have significantly reduced our activities in this area," she said.

An Amazon spokesman declined to comment, beyond saying that the Fresh service had received positive feedback in Germany, Amazon's second biggest market outside of the United States.

ADVERTISEMENT

Online sales of food have grown slower in Germany than in many developed markets, partly due to the high density of discount stores like Aldi and Lidl.

E-commerce only made up about 1.2% of food sales in Germany in 2018, according to the HDE retail association.

A company source said customers of Amazon Fresh would not be affected by the DHL move.

Independent Delivery Network

Amazon is building up its own delivery network in Germany, independent of big logistics players like Deutsche Post DHL.

ADVERTISEMENT

Earlier this month, FedEx Corp said it would end its contract with Amazon for small-package ground deliveries, as the online retailer becomes more of a threat than a customer by expanding its own delivery network of planes, trucks and vans.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

Get the week's top grocery retail news

The most important stories from European grocery retail direct to your inbox every Thursday

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our terms & conditions and privacy policy. You can unsubscribe at any time.