DPD Latvia recorded double-digit parcel volume and revenue growth last year thanks to the growing popularity of e-commerce in the country, and is introducing the group’s Predict service with one-hour delivery timeslots.
In 2014, DPD Latvia posted strong volume growth of 13% delivering 2.45 million parcels while revenues were expected to rise about 10% from €9.8 million in 2013. Orders from online shops accounted for 30-40% of the company’s revenues, compared to only 5% four years ago, and overall revenues have increased more than 50% since 2010.
“The leap is big but Latvia is not unique in this respect, the same trend is being observed all over Europe. The only difference is that Latvians tend to buy more from local online shops,” Aynar Gilis, DPD Latvia Chairman, explained.
According to Gilis, revenue growth in 2014 slowed down compared to recent years not because of competition but rather due to the general situation in the country. The dynamic development of the company which started a few years ago was related to Latvia becoming a member of the European Union. The other strong growth driver was the development of e-commerce, he said.
According to the Commission for Public Services Regulation, the share of DPD Latvia in the Latvian courier and express delivery market amounts to 46%. “Our responsible approach towards each customer enabled us to maintain our leading market position but we don’t stop here and plan further dynamic development both this year and in the years to come,” Gilis said.
Last month, DPD Latvia started its rebranding process as DPDgroup, which is part of the strategy announced by La Poste's express parcels division GeoPost to accelerate its growth ambitions in Europe and overseas focusing on B2C expansion and potential acquisitions. The rebranding not only includes visual changes with a modernised logo but also service improvements as well as new services to be launched all over Europe, DPD Latvia said.
At the beginning of this year, DPD conducted a survey among the major e-commerce market players to identify the current tendencies on the Latvian market. The results showed that online shoppers have become increasingly demanding and want to know as exactly as possible when their parcel will be delivered.
“Responding to the market demand, DPD Latvia is introducing the new DPD Predict service as part of which the previous four-hour delivery time slot has been reduced to one hour. It will enable the recipients to plan their time in a more efficient way. We are confident that the Predict service will have a positive impact on the development of e-commerce in Latvia,” Erika Darsynya, Director Sales and Marketing, DPD Latvia, said.
The second important service that DPD Latvia is continuing to develop and improve is Pickup Paku Bode, a network of parcel pick-up and drop-off points. The DPDgroup international Pickup network currently counts 16,000 parcel shops in 13 countries, with a further 6,000 Pickup parcel shops to be added this year. “This means that we will also be able to send and receive parcels within the Pickup network all over Europe in the future,” Darsynya added.
As a leading parcel delivery provider in the Latvian B2B and B2C markets, DPD Latvia employs over 250 staff in daily operations at its 12 terminals across the country ensuring safe and reliable delivery in Latvia and across Europe.
