As it aims to increase its presence in the Baltics, DHL has made a move to acquire one of the largest parcel operators in the region, Venipak. While the Venipak brand will remain, the company will become part of DHL ecommerce.
Both companies may benefit greatly from the acquisition, with sellers in the Baltics also enjoying benefits like gaining access to broader international markets thanks to DHL’s large and established global network.
DHL Acquires Venipak
DHL has just announced that the company has signed an agreement to acquire Venipak Group, which is one of the largest independent parcel operators in the Baltics, which is a name given to the countries that sit along the Eastern coast of the Baltic Sea, including Estonia, Latvia, and Lithuania.
Venipak has around 800 parcel lockers in the region, a large pick-up point network, and is capable of both B2B and B2C deliveries. While Venipak will gradually become a part of DHL ecommerce and join the company’s logistics network, it’ll continue to operate under its existing brand, and all employees and management will stay in their roles.
The Move Increases DHL’s Presence in the Baltic States
Through the acquisition, DHL is increasing its presence in the Baltics and will aim to combine its global network with Venipak’s local infrastructure and knowledge. The acquisition also gives DHL a well-established domestic delivery network in the area, an area which is known for ecommerce growth and strong out-of-home delivery adoption.
Speaking about the acquisition, the CEO of DHL ecommerce, Pablo Ciano, said that “The Baltic states are among the fastest-growing e-commerce markets in Europe today, which is why we were looking for a partner with deep local market expertise, a trusted brand and the ambition to continue growing,”.
He also said that the move supports DHL’s strategy and ambition to further expand its network of parcel delivery services across Europe, while focusing on things like reliability, sustainability, and affordability.
While DHL gets strong local expertise and a greater footprint in a growing region from the deal, Venipak also benefits greatly. For example, DHL plans to invest in Venipak’s workforce, expand its parcel locker network, boost sorting capacity, and even improve its IT infrastructure.
This is the latest move by DHL to expand its horizons, but not the first it’s made recently. For example, it also expanded air freight capacity between Europe and Asia, connecting key hubs in the regions to one another.
Huge Benefits to Sellers in the Region
In addition to being great for both brands, the move also helps sellers in a variety of ways. First, Venipak customers in the Baltics will have even greater opportunities to expand businesses both domestically and internationally through DHL ecommerce’s expansive global network.
It’ll also give them access to over 165,000 out-of-home points, which are especially ideal for modern and on-the-go consumers who may not want items delivered to their homes. The move maintains what customers and businesses value about Venipak (such as speed and flexibility), while giving them access to one of the largest logistics networks in the world.
Our Take
The Growing Importance of Increasing Presence Across Europe
Because European demand for ecommerce is shifting to the North and the East, the Baltic region is often seen as a high-growth digital market with plenty of potential. As European ecommerce grows from being centered mainly around the West, companies must have a presence everywhere to take part in this growth.
Some keys to keep in mind when expanding to new regions in Europe include adopting delivery preferences that customers there enjoy(such as offering parcel locker delivery), using regional fulfillment hubs to keep delivery and transit times short, and ensuring things like your store’s language and supported payment methods line up with what these regions prefer.
