Deutsche Post today stressed its commitment to the Postbus long-distance coach business despitethe decision of German automobile club ADAC to pull out of the joint venture.
The ADAC, which has been hit by embarrassing scandals over the last year, decided to exit theloss-making start-up business for financial reasons, leaving Deutsche Post alone in the drivingseat.
The Postbus competes with other coach firms in the long distance passenger road transport marketthat was liberalised last year and which is characterised by aggressive pricing and several recentinsolvencies. The venture’s revenues and passenger numbers have not been disclosed to date.
Responding to numerous questions on the issue at today’s Q3 results press conference, DeutschePost DHL CEO Frank Appel reiterated that the company believes Postbus can be a success in the longterm, benefiting from consumer trust in Deutsche Post and the company’s nationwide consumernetwork.
“We are convinced that it is a fundamentally attractive product. Our product has establisheditself at the top of the customer satisfaction level and we are convinced that we can operate itsuccessfully and sustainably,” he said.
Appel declined to give a date by when the coach business should be profitable. “The question isnot how quickly we can make it profitable but what it would cost us to exit if it’s notsuccessful,” he added.
On Tuesday, Deutsche Post announced that ADAC would withdraw from the venture as of November2014 and that it would acquire ADAC’s stake in the business and continue to run it alone. Therewould be no changes for customers or the route network.
“Our Postbus has established itself as a comfortable, safe and cost-effective alternative tocars, planes and trains,” said Jürgen Gerdes, Board Member for Post – eCommerce – Parcel atDeutsche Post DHL. “It is performing as planned in a growing market and our passengers arecompletely satisfied. As are we – which is why we intend to expand the network even further nextyear.”
