Deutsche Post DHL CEO Confirms Delivery Deal With AmazonFresh

Deutsche Post DHL, the German logistics company, is being tapped by Amazon to deliver groceries in Germany for AmazonFresh.

According to a report in Reuters, citing comments Deutsche Post Chief Executive Frank Appel made at the company’s general meeting, Deutsche Post is aiming to be the service provider for online grocery sales. The deal, noted Reuters, is expected to alleviate concerns that Amazon’s own delivery services are a growing threat to Deutsche Post. Deutsche Post already delivers packages for Amazon in Germany, according to the report.

The deal between the two comes at a time when deliveries of online orders are exploding in Germany, lifting the profits of Deutsche Post, reported Reuters. For Amazon, Germany is its second largest market, but online grocery sales haven’t been a hit, partly because there are a lot of food stores and the main bargain stores Aldi and Lidl haven’t gone online in a fast manner.

REWE, the country’s second-biggest supermarket chain, is pouring money into eCommerce ahead of Amazon’s move into food, reported Reuters. Deutsche Post currently operates online supermarket, AllyouneedFresh. Appel said during the meeting late last week that Deutsche Post would continue to operate its online supermarket with the Amazon deal.

In March, reports surfaced that Amazon was partnering with DHL to leverage DHL’s facility at the Cincinnati/Northern Kentucky Airport to build out its upcoming Prime Air cargo hub operation. The hub will accommodate Amazon’s growing fleet of Prime Air cargo planes and work to address the growing delivery demand from Prime customers.

The partnership also reportedly includes the introduction of AmazonFresh food deliveries in Germany starting in April, which Appel confirmed. As per the reported terms of the partnership, DHL is to become the exclusive supplier for AmazonFresh food deliveries in the nation of some 80 million.