DHL eCommerce Solutions, the e-commerce logistics unit of Deutsche Post DHL Group, and Cainiao Network, the logistics arm of Alibaba Group, are teaming up to build the largest out-of-home delivery network in Poland.
In its announcement, DHL said it signed an agreement under which DHL should purchase part of the equity securities of Cainiao's subsidiary in Poland.
Source: DHL
The partnership aims to improve the quality and speed of Poland's out-of-home delivery (OOH).
€60M initial investment
DHL said in a statement that in the first phase following the transaction, the two companies plan to invest €60 million euros in installing parcel lockers across the country, with the aspiration of forming one of Poland's largest access point networks.
Pablo Ciano, CEO of DHL eCommerce Solutions, cited the growth potential for e-commerce in Poland. He said that the partnership with the Chinese logistics company would provide its customers with "an even greater shipping experience" on top of DHL's existing to-door delivery option.
"Poland is one of the fastest growing e-commerce markets in Europe, expected to double by 2027, and up to 40% of consumers prefer to have shipments delivered to parcel lockers," Ciano said.
"By joining forces with Cainiao, we will strengthen our position as a trusted parcel provider and create an extensive network of state-of-the-art parcel lockers."
To start, DHL said both partners would merge their existing parcel locker networks so that consumers get immediate and seamless access to the offerings of DHL and Cainiao.
The two companies already operate a total of 1,200 parcel lockers in Poland.
Furthermore, based on the existing DHL network of parcel shops and access points, the companies will invest, in the initial phase of the partnership, €60 million, in installing modern parcel lockers with user-friendly interfaces at key locations.
Leading parcel locker network
"The ultimate ambition is to build Poland's leading parcel locker network, with seamless coverage of the first and last mile, adding to the already extensive network operated by DHL in Europe, totalling over 90,000 access points," DHL said.
Over the past years, Cainiao has been setting up its regional hub in Liege, Belgium and sorting centres in major markets in Europe.
This is further complemented by a network of parcel lockers in Poland, Spain, and France to provide a more efficient and seamless logistics experience across Europe.
"As we tap into the great potential of Europe's e-commerce market, Cainiao strives to contribute to the growth of a sustainable logistics ecosystem by deepening our cooperation with our local partners. We are glad to have found such a strong and well-established partner in DHL, who shares our vision," said William Xiong, chief strategy officer and general manager of Europe and SEA regions at Cainiao Network.
"By combining both companies' logistics, technology, and e-commerce expertise, we aspire to deliver superior service to our clients and create an unmatched online shopping experience for consumers," the Cainiao executive added.
In the announcement, DHL said the transaction is subject to merger control clearance in jurisdictions of certain countries.
Such approvals are expected in the coming months.