Deutsche Post AG's DHL unit is currently in discussion with Volvo Car Group for a possible deal to drop parcels in cars, according to a Bloomberg report.
Deutsche Post wants to have a bigger share of the parcel-delivery service market and partnership with Volvo may give a boost to its business.
The report by Behrmann and Weiss indicates that this deal may also increase sales for Volvo that is competing with automobile giants like BMW with impressive sales figures.
Both companies ran a pilot in Sweden that used Volvo's GPS-linked On Call service to drop parcels. The parcel is given to the owner after he agrees to accept delivery via text message sent to his phone.
Collaboration between Volvo's On Call smartphone application and Deutsche Post should ensure that goods are delivered safely on the first attempt to customers.
Online shopping is becoming a huge success with customers but many are not present at home when their parcels are delivered.
This impacts eCommerce and puts a dent in profits for package handlers as they have to go a couple of times to deliver the parcel to consumers.
Deutsche Post is also discussing parcel delivery with other automakers besides Volvo and intends to design a program that ensures one time delivery for customers.
A similar deal was recently struck between Swedish online retailer Linas Matkasse AB and Norwegian mail operator Posten Norge AS's Bring unit.
Both partners leveraged the On Call remote-control technology to access vehicles and cut down time wasted in delivering parcels to empty houses.
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