March 22, 2017 / 11:38 AM / 3 years ago

Deutsche Post will deliver AmazonFresh goods in Germany -sources

DUESSELDORF, Germany, March 22 (Reuters) - Deutsche Post’s package service DHL will deliver goods for Amazon’s AmazonFresh service in Germany, several people close to the matter said on Wednesday.

The two companies have signed an exclusive deal, and a trial will start in Berlin, they said.

Amazon and Deutsche Post, which already delivers some products for Amazon, both declined to comment.

Amazon launched a fresh food delivery service in Seattle in 2007 and has since expanded to a handful of other U.S. cities. Last year it started the service in London.

In Germany, Amazon’s second-biggest market outside the United States, development of grocery ecommerce has been slow as the country has a high density of food stores and the dominant discounters Aldi and Lidl have been slow to go online.

However, REWE, the country’s second-biggest supermarket chain, has been investing heavily in ecommerce in anticipation of Amazon’s move into food.

Management consulting firm A.T. Kearney expects ecommerce will account for 3 percent of Germany’s grocery market by 2020 - up from just 1 percent now. (Reporting Matthias Inverardi; writing by Harro ten Wolde; editing by Jason Neely)

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