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European Postal Services up for Challenge by Uber Expansion Ubers drivers are moving into parcel deliveries

European Postal Services up for Challenge by Uber Expansion

2016-02-16 16:12

As Uber is moving into deliveries traditional European postal services might be facing a hard time, according to analysts.

European postal companies, such as Royal Mail, Deutsce Post and PostNL, could be forced to face competition if taxi service Uber moves into deliveries, as it has done in some US cities. That could be a major challenge for the traditional services, Reuters reports.

UberRUSH, which connects the ordering person with a courier rather than a taxi, has already started delivering parcels in the US, and chances are the delivery start up will conquer shares of markets in Europe as well.

- UberRUSH would be another potential competitor trying to take a slice of the pie, which would no doubt put further pressure on companies like Royal Mail when same day delivery grows in importance, said David Kerstens, European transport and logistics analyst at Jefferies, to Reuters.

Second Threat After Amazon

According to Uber, the startup has no plans on expanding the RUSH-service to Europe, but analysts say it is only a matter of time until the service moves outside the US. This might, according to Reuters, become a second strike for the postal businesses since Amazon has already revealed plans on introducing its own delivery service, which for example Royal Mail has admitted could more than halve the growth potential for its parcels business.

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The major postal firms however claim they are not worried. Royal Mail for example said to Reuters that new entrants in to some extent were adding options to the consumers and PostNL said it welcomed competition.

Johanna Allhorn

Reporter

Journalist who has previously worked for several big media oulets making both newspapers and television broadcasts. Now contributing to the editorial content on Ecomony.

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