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DHL stops deliveries of Amazon Fresh in Germany

FILE PHOTO: An Amazon Fresh delivery truck is parked outside of an Amazon Fulfillment Center on Cyber Monday in Tracy, California, USA, November 28, 2016. REUTERS/Noah Berger/File Photo

BERLIN (Reuters) – Deutsche Post DHL (DPWGn.DE no more fresh-food-in-Germany), Amazon (AMZN.D) if the demand for the services will be launched in 2017 and it is fair, a hospital spokeswoman said on Wednesday.

The sale of food is an essential part of the strategy of the world’s top online retailer, especially since he was bought by the AMERICAN chain Whole Foods, which, in 2017, but it’s Fresh, the service was launched in 2007, the space needle in Seattle, has grown at a much slower rate than in the rest of the company.

A spokeswoman confirmed a report in the German Lebensmittel Zeitung newspaper, trade publication, that DHL was the end of the partnership with Amazon Fresh, the add the rest of the business, Amazon was not affected.

“The market for online ordering of fresh food, it is far short of expectations to date. For this reason, the complexity of the process, we have significantly reduced our activities in this area,” she said.

An Amazon spokesman declined to comment, but to say that it’s Fresh, the service had received positive feedback as well as in Germany, Amazon’s second biggest market outside of the United States of america.

Sales of food grew more slowly in Germany than in many developed markets, in part due to the high density of discounters like Aldi and Lidl. E-commerce is only about 1.2% of food sales in Germany by 2018, according to the HDE retail association.

A company source said the customers of the Amazon Fresh should not be affected by the DHL move in.

Amazon is building its own delivery network in Germany and independent of the major logistics players, including Deutsche Post’s DHL.

Earlier this month, FedEx Corp. said it would end its arrangement with Amazon, in the case of small-package ground delivery, as online shopping is becoming more of a threat than that of a customer due to the expansion of its own delivery network of planes, trucks, and vans.

Reporting by Matthias Inverardi; Writing by Emma Thomasson; Editing by Michelle Martin

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