The European Commission is working on a new legal framework for the delivery market: the EU Delivery Act. The public consultation (‘Call for Evidence’) runs until 5 March. From SKR AG’s perspective, this phase will determine how competition and investment in the European parcel market will function in the future. “We are talking about regulation, but we are deciding on the structure of the market,” says Rico Back, Managing Partner of SKR AG. “Ultimately, it’s about who controls access to parcel volumes.”
From the letter market to a data-driven delivery market
The current EU Postal Directive dates back to a time when letters dominated the market. The Delivery Act aims to transform it into a modern legal framework for a parcel market dominated by e-commerce – with a stronger focus on digital processes, interoperability, fair competition and cross-border delivery.
A key point of discussion is the introduction of an open, interoperable infrastructure – comparable to IBAN in payment transactions or EAN/GTIN in retail. This would allow parcels and market participants to be clearly identified across systems and transferred between networks.
“This is not about detailed regulation, but about market architecture,” says Rico Back, Managing Partner of SKR AG. “The decision is between an open network of many compatible systems – or closed platform ecosystems with technical gatekeeping.”
Consequences for parcel services: greater access – but tougher competition
According to SKR AG, standardisation would have a significant impact on the industry:
On the opportunity side, parcel service providers would find it easier to connect to large shippers and international shipping platforms. Individual IT integrations, which often take months and incur high project costs today, could be eliminated or greatly simplified. This would lower market entry barriers, make new customers more accessible and improve the utilisation of cross-border networks. At the same time, dependence on individual large customers or platforms would decrease, as shipping volumes could be more easily distributed among multiple clients.
On the risk side, however, the comparability of providers increases significantly. When interfaces, shipment data and processes are standardised, shipping software can automatically assign delivery orders. Parcel services are subject to greater direct competition in terms of price and performance. Long-term commitments become less important, volumes can be reallocated at shorter notice and predictability declines. In addition, bargaining power shifts to software and routing providers who bundle demand and purchase transport capacity.
“The Delivery Act shifts competition away from technical access barriers and towards actual delivery quality,” says Back. “In future, it will be decided by who delivers faster, more reliably and more efficiently – no longer by who is best integrated into the system.”
New power question along the value chain
At the same time, a strategic shift is taking place in the digital value chain. “Ultimately, it will be decided by who controls customer access – operators of physical networks or digital orchestrators who control transport capacities,” explains Back. “That’s why now is the time for the industry to assert its position. Once the framework is set, it will determine the market for decades to come.”
The European Commission’s consultation offers the industry an opportunity to incorporate operational experience from logistics into the design of the legal framework.
