After abandoning their attempt to compete with UPS and FedEx in the American package delivery market 10 years ago, DHL is making a careful attempt to reenter the marketplace.
After testing the service for the past 2 years, DHL recently announced the formal launch of its new venture, called Parcel Metro. Initially, the service will be available in New York, Chicago, and Los Angeles, with expansion to San Francisco, Atlanta, Washington, D.C. and Dallas to follow.
Parcel Metro, while using the international parcel warehouses in the US that DHL maintained after pulling out of their ill-fated domestic delivery service, takes advantage of local couriers and delivery companies to make the final delivery.
Parcel Metro and Amazon’s recently announced Shipping with Amazon service can both be viewed as a response to the recent rise in shipping rates posted by FedEx and UPS. The companies claim the higher fees are necessary due to the higher costs they experience when making deliveries to homes as opposed to businesses. These home deliveries continue to surge due to the increase in ecommerce transactions.