Deutsche Post AG Business and Regulatory Environment

Deutsche Post AG operates in a highly competitive market, with a strong presence in the German postal and logistics industry. The company has a significant market share in Germany, with a history dating back to 1995.

Deutsche Post AG has undergone significant changes since its privatization in 2000. The company has expanded its services to include parcel delivery, logistics, and e-commerce solutions.

The company's business environment is heavily regulated, with the German Postal Act of 1998 governing its operations. This act requires Deutsche Post AG to maintain a universal service obligation, providing postal services to all areas of Germany.

Deutsche Post AG has a strong focus on innovation, investing heavily in digitalization and technology to improve its services and stay competitive.

Deutsche Post AG's company structure and operations are quite impressive. The company has grown significantly since its privatization through various acquisitions, including DHL, Danzas, and Exel.

The company is divided into several operational business areas, including Post and Paket Deutschland, eCommerce, Express, Global Forwarding, Freight, and Supply Chain.

Here's a breakdown of the main business areas:

The Corporate Center is responsible for overseeing the overall management of the company.

The Deutsche Post has grown into a large logistics company through a series of acquisitions, including DHL, Danzas, and Exel.

The company's structure is divided into several operational business areas, including Post and Paket Deutschland, eCommerce, Express, Global Forwarding, Freight, and Supply Chain.

Here's a breakdown of the company's operational business areas:

The Corporate Center handles the company's leadership and management tasks, overseeing the entire organization.

In Germany, a stock exchange listing is often a prerequisite for a company to go public, allowing it to raise capital from a large number of investors.

A company's stock exchange listing can significantly impact its valuation, as it provides a benchmark for investors to assess the company's worth.

The Deutsche Post has been reducing the number of its branches for years, and this has sparked resistance from the public. They've been partnering with other companies like McPaper or supermarkets to make up for the lack of physical locations.

Initially, only rural post offices were closed and replaced with post agencies, but this trend is now also affecting big cities and their suburbs. This move has been criticized for reducing the number of mailboxes and decreasing the frequency of mail collection.

As of 2013, a shift occurred due to the rise in internet mail, leading to the opening of many new DHL package shops. However, these shops don't accept mail.

The current leadership of Deutsche Post AG is headed by Tobias Meyer, who has been the CEO since May 2023. He took over from Frank Appel, who moved on to become the Chairman of the Supervisory Board of Deutsche Telekom AG.

Tobias Meyer is the dienstälteste Vorsitzende (longest-serving chairman) of a DAX company, having previously served as CEO from 2008. Frank Appel was unanimously elected as his successor in 2008, following Klaus Zumwinkel's resignation due to tax evasion allegations.

Here is an overview of the current members of the Vorstand (Executive Board):

The management team at Deutsche Post DHL Group is led by the Vorstand, a group of experienced executives responsible for overseeing the company's operations. The current Vorstandsvorsitzender is Tobias Meyer, who took over the position on May 4, 2023.

Tobias Meyer is responsible for Global Business Services, and he's not the only new face in the Vorstand. Frank Appel, the previous Vorstandsvorsitzender, stepped down in 2023 to take on the role of Aufsichtsratsvorsitzender at Deutsche Telekom AG.

Here's a list of the current members of the Vorstand:

Some of these executives have been with the company for a long time, like Melanie Kreis, who has been handling finances since October 2014.

At the Deutsche Post, new employees who are absent due to illness for more than 20 days in their first two years have no chance of getting a permanent job contract.

The company's decision to tie the permanence of job contracts to employees' sick days is outlined in a corporate concept sent to all branch managers.

The pay gap between top executives and regular employees at the Deutsche Post is stark. Vorstandsmitglieder of the 30 DAX companies earned an average of 71 times the salary of a regular employee in 2017.

Frank Appel, the former CEO of Deutsche Post, received a salary 232 times higher than that of a regular employee.

The number of complaints against the German postal and package industry reached a record high in 2022, with approximately 43,500 grievances filed. Most of these complaints were about delayed or lost shipments, and a significant portion of them were directed at Deutsche Post AG.

Many people were unaware that they could file a complaint with the Bundesnetzagentur prior to this, which may have contributed to the surge in complaints. I can understand why people would feel frustrated and want to take action when their mail or packages don't arrive on time.

Deutsche Post Mobility, a bus company that operated under the brand name Postbus, had a relatively short-lived partnership with the ADAC, a German automobile club. The ADAC held a 50% stake in the company.

The partnership between Deutsche Post Mobility and the ADAC ended in November 2014, with the ADAC announcing it would be selling its stake by March 31, 2015. This marked a significant shift in the company's ownership structure.

Deutsche Post Mobility operated a network of buses connecting 30 major German cities across nine routes. This service was active from spring 2014 to October 31, 2016.

In a surprising move, Marktführer Flixbus acquired Postbus on November 1, 2016, effectively taking over the company's operations.

The Poststreik 2015 – Outsourcing was a major controversy that sparked a massive labor dispute between the German postal service and its employees. The postal service had created 49 new regional companies, DHL Delivery GmbH, which employed around 6,500 people, but paid them less than their colleagues in the main postal service.

These new companies were seen as a way to outsource jobs and reduce costs, but the union, ver.di, argued that it was a breach of a contract that limited the use of external contractors. The dispute was so severe that it led to an 8-day strike in June and July 2015, involving around 140,000 postal workers, with 32,000 of them participating in the strike.

The strike was one of the most intense labor disputes in the postal service's history, with 42% of 1,370 people surveyed saying they had missed important mail deliveries due to the strike. The dispute was eventually resolved with a settlement that included a one-time payment of €400 to employees, as well as raises of 2% and 1.7% in 2016 and 2017, respectively.

However, the union was not able to achieve its goal of dissolving the regional companies, and the postal service was able to keep its promise to retain its delivery staff, but new hires could still be made in the separate companies.

In 2022, the number of complaints against the German postal and package industry peaked at around 43,500.

The majority of these complaints were directed at the Deutsche Post AG, citing issues with delayed or lost shipments.

Many people were likely unaware that they could file a complaint with the Bundesnetzagentur before this.

Deutsche Post AG has a robust regulatory framework in place to ensure compliance with various laws and regulations.

The company is subject to the German Postal Act, which governs the postal services industry in Germany.

Deutsche Post AG has implemented various security measures to protect its customers' data and prevent cyber threats.

The company uses advanced encryption methods to secure its online services, including its website and mobile app.

Deutsche Post AG has also established a comprehensive incident response plan to quickly respond to and contain security breaches.

The company's IT infrastructure is regularly audited and tested to ensure its security and integrity.

Deutsche Post AG has implemented strict data protection policies to safeguard its customers' personal data.

The company's data protection policies are aligned with the General Data Protection Regulation (GDPR) and the German Federal Data Protection Act (Bundesdatenschutzgesetz).

The EC has examined services of Deutsche Post AG in several cases, including DPAG's recent move from joint to sole control of SOH, DPAG/DHL (COMP/M.2908), DPAG/Air Express (COMP/M.1794) and DPAG/Securicor (COMP/M.3155).

Deutsche Post AG has been involved in several significant market transactions, including a change in control of SOH.

These cases highlight the EC's scrutiny of market transactions involving Deutsche Post AG.

Many competitors have filed complaints against the Deutsche Post AG in German courts, the EU, and the RegTP. These complaints were lodged on behalf of the company's members by the Bundesverband Internationaler Express- und Kurierdienste.

The complaints targeted the Deutsche Post AG's allegedly unfair business practices, including the elimination of competition, the misuse of its dominant market position, and the receipt of state aid.

The Bundesverband Internationaler Express- und Kurierdienste, a trade association representing its members, played a key role in filing these complaints.

The European Commission has examined services in several cases, including a recent move by DPAG from joint to sole control of SOH.

DPAG's recent move from joint to sole control of SOH was examined by the EC in the case DPAG/DHL (COMP/M.2908).

The EC has also looked into DPAG's acquisition of Air Express in the case DPAG/Air Express (COMP/M.1794).

Additionally, the EC examined DPAG's acquisition of Securicor in the case DPAG/Securicor (COMP/M.3155).