- DHL's eCommerce unit is rolling out a service called Parcel Metro in some U.S. cities, with the goal of meeting consumer demands for same-day and next-day delivery.
- The service uses technology and software to crowdsource drivers for deliveries and track shipments in real time.
- Parcel Metro is already available in Chicago, New York and Los Angeles. DHL plans to introduce the service later this year in Dallas, Atlanta, San Francisco and Washington, D.C.
Customer loyalty "is won and lost in how well the orders are fulfilled and delivered," Charles Brewer, CEO, DHL eCommerce, said in a company press release.
Parcel Metro seeks to address this key challenge for online retailers, as consumers want their goods delivered in shorter periods of time. The service utilizes contracted vehicles and DHL's distribution centers to make same-day and next-day deliveries.
With the roll-out in urban areas across the U.S., DHL positions its service in locations that are close to consumers, thus decreasing transport times from end to end.
Although retailers likely benefit from the additional distribution option, it's another disruption for the logistics industry. Some analysts see it as a swipe at existing logistics providers in the U.S., like UPS and FedEx.
Those two 3PLs have an established network and infrastructure across the country — not just in major metro areas — but their growth has stagnated recently.
With DHL's Parcel Metro and Shipping with Amazon (SWA) entering the market, competition heats up in the logistics sector, which could push prices down — and that's good news for shippers.