DPD goes to the Post Office

DPD is expanding its UK ‘out of home’ delivery network significantly with a historic deal as the first private parcel company to offer a Post Office ‘click & collect’ service alongside Royal Mail.

The new partnership is also expected to generate additional customers and revenues for Postmasters, who run the majority of British post offices as commercial businesses, often combined with other retail shops.

The Post Office, which operates the UK’s largest retail network with 11,500 branches, previously only had an agreement with Royal Mail Group for parcel collections directly at its branches but has now opened up its network to external carriers for the first time in its 360-year history.

The company, which was split off from Royal Mail more than a decade ago, described the partnership with DPD as “further demonstration of the Post Office’s strategy to ensure the future sustainability of the network, provide an innovative offering to consumers in the fast-growing parcel market and drive footfall for Postmasters and to the High Street more broadly”.

Direct deliveries to post offices

DPD, currently with about 2,500 Pickup shops in the UK, will start delivering parcels directly to post offices next week. The ‘Click and Collect’ service will initially be available at around 250 Post Offices this month before rolling out to approximately 1,500 branches across the UK ahead of the peak Christmas period.

Customers making a purchase online will have the option to choose their local Post Office as the collection point for their parcels. DPD will deliver parcels directly to the Post Office and the Postmaster will process customer collections at the counter.

More delivery options

Elaine Kerr, DPD CEO, said: “This is a significant, long-term partnership between two brand leaders in the parcel industry and comes at a time when the convenience of online shopping and delivery is more valued than ever. It is great news for DPD parcel customers and for Post Office branches too.”

She added: “Our aim is always to get parcels delivered safely, on time and provide recipients with as much choice as possible. This partnership enables us to offer more options at the point of purchase, while the parcel is in-flight and on those occasions when we can’t leave a parcel safely.”

Convenient locations

Nick Read, Chief Executive at the Post Office, said: “Combining the biggest physical retail network with one of the Europe’s best-known logistical carriers provides greater customer convenience, footfall for Postmasters and helps people back to the High Street as Covid-19 restrictions ease.

“I’m delighted that through our partnership with DPD, customers can select their local Post Office to collect their parcels and know that they are often open longer hours, staffed by a knowledgeable Postmaster and located moments from where they live.”

Sustainable deliveries

The two companies also underlined that their partnership will help reduce the environmental impact of vans making multiple stops to drop off parcels, whilst at the same time encouraging people to return to their local high street on foot. Most Post Offices are open for long hours throughout the day and many are open at weekends.

Read explained: “As a society, we are increasingly considering the environmental impact of our activities. This will mean ensuring the last mile of delivery is ‘carbon free’. Our physical network of branches helps make this a reality, encouraging people to walk or cycle to their local Post Office to collect their parcels.”

Lower environmental impact

According to DPDgroup research on the environmental impact of Click & Collect services, there is an average 63% reduction of Greenhouse Gases (GHG) in last-mile delivery when using the DPD Pickup network of parcel shops.

Kerr commented: “Our sustainability strategy is based on looking at every single aspect of our operation and challenging ourselves to make it more efficient by reducing emissions and miles, while improving the service for customers at the same time.

“Having the option to deliver to Post Offices helps us achieve that. DPD will provide all-electric delivery to 10 major towns and cities by the end of this year and 25 locations by 2025. With that and recipients having the option to walk to their local Post Office to collect a missed parcel, the vision of a carbon-free ‘last mile’ is becoming a reality.”