Royal Mail is set to enhance its parcel locker network through a strategic partnership with Yeep! and plans to introduce its own proprietary network next year.
This expansion aims to bolster its presence in the rapidly growing out-of-home parcels market, driven by the surge in online shopping.
Starting January, the collaboration with Yeep! will provide Royal Mail customers access to over 1,000 additional parcel lockers. Yeep!’s network is projected to expand to 3,000 lockers by the end of next year.
Martin Seidenberg, CEO of International Distribution Services (IDS), Royal Mail’s parent company, highlighted the significance of this partnership in enhancing the convenience of sending and receiving parcels. The out-of-home market, including parcel lockers, is considered a crucial growth area for investors.
EP Group, which is in the process of a £3.6 billion takeover bid for IDS, believes Royal Mail requires approximately 20,000 lockers, including its own network, at an estimated cost of £200 million to £400 million. EP Group declined to comment on the specifics.
Following the Yeep! partnership, Royal Mail will offer over 21,000 locations for parcel services, including more than 2,500 lockers, 11,500 Post Office branches, and 5,000 Collect+ stores. This expansion builds on Royal Mail’s agreement with PayPoint in February, granting access to the Collect+ network at thousands of local stores.
Yeep! introduced the UK’s first battery-powered parcel locker last year, which requires no groundworks or wiring and can be installed within an hour. This innovation aligns with Royal Mail’s strategy to remain at the forefront of customer convenience and market trends.
Seidenberg stated, “We want to be present in that market and we want to be seen also in the streets … It’s part of us showing that we are innovative and we are going with the trends and we are there for the customers.”
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Royal Mail expands parcel locker network with Yeep! partnership