Jako jedno espresso. Češi mají moc levnou dopravu, říká šéf DPD
The Czech Republic’s parcel delivery sector is facing a sustainability crisis driven by aggressive price competition, according to Miloš Malaník, Director of DPD for the Czech Republic. The executive warns that the current pricing environment is untenable, citing a market where shipping costs have remained stagnant for years despite rising operational pressures.
The domestic market is currently divided among five major carriers: Zásilkovna, Balíkovna (operated by the Czech Post), PPL, GLS, and DPD. This high level of competition means Czech e-shops often provide customers with a wider array of delivery options than those available in markets like Germany. However, this competition has pushed costs to extreme lows.
“Due to competition, the price for home delivery of a shipment is insanely low,” Malaník stated. He noted that a package can often be delivered across the entire Czech Republic by the next day for a price equivalent to, or even lower than, an espresso in a café.
This downward pressure on pricing is exacerbated by the rapid growth of foreign online marketplaces, which expert estimates suggest now account for one-fifth of all e-commerce in the Czech Republic. These international platforms typically demand highly economical delivery solutions, further squeezing carrier margins.
Operational costs, particularly fuel, have added further strain to the industry. In response to rising fuel prices, carriers, including DPD, implemented increases to fuel surcharges in March. To address these costs, the government of Andrej Babiš moved to cap fuel margins by reducing the excise tax on diesel, a measure intended to partially lower prices.
To illustrate the disparity in the Czech market, Malaník compared the region to Portugal, which shares a similar economy, population size, and purchasing power. He revealed that the average price of a parcel in Portugal is approximately 60% higher than in the Czech Republic.
The disparity suggests a market correction may be inevitable. Regarding the long-term viability of the current landscape, Malaník added, “I do not believe It’s sustainable in the future for there to be five large players in the market.”
