Analysts have said the planned sale of DHL Express’s same-day domestic business will create another major player in the  market to compete with CitySprint, and is unlikely to affect DHL's profitability.

Frank Proud, director at Apex Insight said the deal will see Rico Logistics, the company set to buy the business later this month, become a major competitor for CitySprint.

“Rico Logistics is joining CitySprint in buying up other operators to build up the scale up their nationwide sameday courier networks,” he said.

“All the signs are that it is likely to look for more add-on acquisitions in future.”

Mark O’Bornick, director of research and analysis at Analytiqa, told Motortransport.co.uk that it is difficult to identify how much of an impact the sale will have on DHL Express, as it is a challenge break down its turnover by service in the UK.

“The deal is a clear continuation of a longer term strategy, not just in the UK, to focus on international, time-definite deliveries, where DHL Express is market leader in all regions outside of the Americas,” O’Bornick said.

“In the UK, this has seen the sale of the domestic parcels operations and more recently a disposal of part DHL Global Mail’s UK business. The strategy is crucial to drive profitability and margin improvements,” he added.

CitySprint, which recently completed its third acquisition in 2013 when it bought Enfield-based The Courier Service in August, saw a 36% increase in turnover to £101m in 2012. It declined to comment.

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