La Poste's express parcels division GeoPost has gained full ownership of DPD Russia by acquiring the remaining 50% share from Turkish partner Yurtici Kargo.
The deal, for an undisclosed sum, was already signalled by La Poste last November when it announced that GeoPost, which already held 50% in Armadillo Holding (DPD Russia’s legal name), would hold talks with Yurtici Kargo over its 50% stake.
DPD Russia said that the acquisition of the remaining stake will allow GeoPost, which now trades under the DPDgroup brand, not only to strengthen its position on the Eastern European market but also to stimulate the development of the business holding as a whole.
The Russian company has been successfully engaged in the transportation business for the last 25 years, including 12 years under the DPD brand as part of GeoPost. Now being part of DPDgroup, the Russian division delivers parcels and goods across the whole territory of the Customs Union, which includes Russia, Kyrgyzstan, Belarus, Kazakhstan and Armenia, as well as to 230 countries in the world.
As part of DPDgroup, the Russian subsidiary has also been expanding its services related to e-commerce. This includes the expansion of the Pickup parcel shops with more than 1,000 shops to be established across the country by the end of this year.
The online service Predict is also very popular in Russia allowing recipients to change delivery conditions and re-direct parcels while the exact schedule to 9,000 regions makes it possible to notify the customer in advance of the delivery date.
In terms of international e-commerce activities, DPD makes home deliveries of online orders from Chinese AliExpress, part of Alibaba Group, to over 8,000 destinations in Russia, as its official logistics operator, alongside SPSR.
“DPD has been delivering products of online shops for five years. We are witnessing a continuous increase in the number of online shoppers thanks to the convenience of ordering, a wide range and competitive prices,” Leonid Zondberg, Commercial Director for DPD Russia and CIS countries, said.
"It is important for us to feel as part of the global DPDgroup network. DPD’s stable growth confirms that our strategy has been correct,” Sergey Kruglov, President of DPD in Russia and CIS countries, said. “The exchange of best practices within the group allows us the introduction of innovative services. We believe that the support of the shareholders will enable us to strengthen our leading position on the delivery market in the country and increase the volumes of international business."
GeoPost president Paul-Marie Chavanne concluded: “GeoPost is proud of the achievements of the DPD subsidiaries in Russia, Kazakhstan and Belarus and our decision shows that we are ready to support their further development.”
DPD Russia has over 260 branches as well as collection and pick-up points across the country. In 2014, the company’s turnover grew by 43% in the B2C segment, compared with 2013, while the number of shipments increased by 49%. During that year, the company delivered around 14 million parcels all over Russia, with the total weight of transported cargo amounting to 270,000 tons.
