70% of online shoppers in the UK expect a PUDO (Pick-up & Drop-off) solution at checkout. Offering PUDO is in line with consumers’ wants and it adds a layer of flexibility that can improve brand loyalty, profitability and sustainability. We speak to Sebastian Steinhauser, CEO & co-founder of Parcelly, a hyperlocal and multichannel logistics technology company, about the rise of PUDO and what is next. Learn more about Parcelly here & watch the video below:
Sebastian, how has PUDO changed over the years, especially in two of Parcelly’s key markets the UK and Germany?
The market has evolved from dedicated parcel shops, parcel lockers and all sorts of Pick-up & Drop-off to being a bit more agnostic. The market structure used to be fairly exclusive and related to specific carriers, but has now moved to being more carrier agnostic, with solutions operated separately, even if they are part of a carrier’s network.
In the UK, for example, manned PUDO locations are the market standard and are generally linked to a convenient store. The more you go East, the more you will find that the preferred options are the unmanned location. Both provide specific advantages and it feels that a blend of both is needed to provide a blend of convenient, time efficient and cost effective service.
How do you onboard your partners?
Location partners working with us do not need to choose anymore what couriers they would like to operate, the type of terminals and headsets they would have to train the staff to work with. They have only one device that can service all of the partners.
We consider ourselves to be one of the many solutions that should be offered to consumers either at the checkout or in the process of the parcel being delivered. Due to the change of demand, depending on day and time, Parcelly is the perfect solution for a specific bracket of the last mile.
The solution is either found at the checkout as one of the many options that can be chosen, or couriers provide the option inflight and the home delivery cannot take place for whatever reason.
How often do consumers choose PUDO instead of home delivery, which in the UK is seen as the Holy Grail?
The trend still is home delivery, that being said, adding additional variables like rural vs urban, ported buildings vs non-ported, you will find a quite diverse change in the average. The rate of growth of PUDO is unbroken and continuous. Within the next 5 to 10 years we would see a shift towards home delivery being a premium, paid option and PUDO being the standard.
Parcelly operates 4000 PUDO locations within the UK and in London you can reach one without utilising public transport or other active travel methods. Then there is literally no more sustainable and financially advantageous way of delivering.
I am often asked whether PUDO is for any retail brand and the answer is ‘Yes’. Many consumers opt for a PUDO based on the value of the basket, however, we are seeing a much more diverse range of shipments and basket values. For the online retailers the benefit is that they provide a solution for delivery whenever it is hard to do so to the home.
70% of online shoppers in the UK expect a PUDO solution at checkout. Offering PUDO is in line with consumers’ wants and it adds a layer of flexibility that can improve brand loyalty, profitability and sustainability. More than a ⅓ of those shoppers are willing to switch the retailers depending on whether the preferred delivery options are available.
The perfect PUDO locations
A few things come into play when choosing the perfect PUDO locations. Sebastian explains that Parcelly has a wide range of locations from convenience stores through pharmacies, charity shops, and even pubs. ‘Every year we add new examples of where a PUDO can go,’ he adds.
An important consideration is not just the post cost but how easy it is to get to the PUDO. What needs to be taken into account is local travel preferences. Some countries have a well developed public transport network, in others cycling or walking are the main way for getting around.
About Parcelly
‘Setting up a new market is not an operational challenge for us,’ Sebastian says. The platform is asset light and can be introduced with ease both on the side of couriers as well as retailers. Founded in 2014 Parcelly converts underutilised business space for the use of retailers and logistics companies. The PUDO technology platform ensures a frictionless process for rapidly scaling first-mile delivery & instant fulfilment, both branded or white labelled.
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