Hermes UK transforms into ‘Evri’ after “dramatic” growth

Hermes UK announced today it will rebrand as ‘Evri’, pay pensions to its self-employed delivery couriers and improve its customer service as it steps up organic growth investments 18 months after being acquired by financial investor Advent International.

The high-margin British consumer delivery firm, which has experienced spectacular growth during the pandemic, plans to roll out the ‘Evri’ brand with a new logo and brand identity across all its locations, vehicles and ParcelShops. It will also launch its first-ever TV advertising campaign later this month.

CEO Martijn de Lange declared: “This rebrand follows significant investment and two years of dramatic growth which has resulted in our entire business going through a major transformation programme.”

He stressed: “It is more than just a name change – it is a statement of intent of our commitment to leading the way in creating responsible delivery experiences for ‘Evri one’, ‘Evri where’. It heralds a new culture and an even better way of doing things in an ever-evolving world – building on our achievements and successes.”

High-margin profitable growth

The name change will end an era for the delivery company, which operated as Parcelnet Ltd until re-branding as Hermes UK in 2009 as part of Otto Group’s ambitions for a European B2C parcel network. The German retail group abandoned this strategy years ago and sold a majority 75% stake in the British company to Advent in August 2020.

Since then, the consumer parcels company has experienced spectacular growth. Volumes surged by an unprecedented 66% to a new record of 630 million items in 2020 as online shopping boomed in the first year of the Covid-19 pandemic, reaching a level not expected until 2025.

As a result, company turnover soared by 69% to £1.45 billion in the year ending February 2021, according to accounts filed at Companies House last November. Operating profits surged to £143.4 million from £52.9 million the previous year, and net profit tripled to £106.9 million from £39.96 million one year earlier. Figures for 2021 (FY 21/22) have not yet been disclosed.

Investments

In parallel, the company has invested significantly in its network and workforce over the past two years following its acquisition by Advent, opened new facilities and most recently focused on international sales growth.

Evri now has a team of more than 6,700 employees, an expanding network of hubs and depots, and works with over 30,000 self-employed couriers who deliver to homes and more than 10,000 ParcelShops and parcel lockers across the country.

Pensions for self-employed couriers

One of the first announcements under the new brand is that the company is to auto-enrol its self-employed plus (SE+) couriers, who represent 85% of the courier network, into a pension by the end of this year. These delivery workers are legally self-employed but are entitled to various benefits, including guaranteed minimum pay rates and paid holidays.

According to the company, this move is a UK logistics industry first and represents a £7 million plus investment each year in the earnings security of its SE+ couriers.  In addition, following discussions with the GMB Union, ‘Evri’ will also be introducing the right to maternity/paternity leave for all SE+ couriers with effect from March 2022.

De Lange explained: “When we first announced our SE+ model in 2019 we committed to continuing to develop our support for our self-employed couriers and we are proud to have been true to that and be leading the industry once again. Our couriers receive guaranteed pay rates, paid holiday and now a pension but have also been able to retain the flexibility that so many treasure, fitting in their deliveries alongside their other (often family) commitments.”

Move welcomed

The pensions and benefits moves were welcomed by unions and politicians.

Steve Garelick, GMB Organiser, said: “This breakthrough deal is a massive step forward and will make work better for GMB members. Tens of thousands of couriers will now have the safety and security of knowing their retirement plans are being looked after. 

“Meanwhile, the right to maternity and paternity leave will break down barriers previously blocking those with children from entering the profession. GMB and Evri (was Hermes) have shown once again that when trade unions and businesses are in agreement, the so-called gig economy can be a better place,” he emphasised.

Stephen Timms MP, chair of the House of Commons Work and Pensions Select Committee commented: “This is a huge step in the right direction and will help thousands of couriers plan for retirement. I am delighted to see Hermes provide pensions and parental leave in addition to the holiday pay, guaranteed pay rates and union recognition already available.”   

Customer service improvements

In parallel, Evri also announced “a significant investment” in its customer service to ensure this remained “responsive, knowledgeable and helpful”. This will include launching a fully UK-based customer service team and adding 200 experts who will be based in local depots, closer to where potential issues are. The company will also be upgrading its chatbot and releasing more phone lines for personal communications.

The company has frequently faced consumer and media criticism in the past about the quality of its customer service.

ESG commitments

Finally, the company stressed that ESG “will be at the heart of the new Evri brand” as it “remains committed” to reducing its impact on the planet and promoting equality and fairness.

This will include continuing to grow its industry-leading use of alternative fuels and innovative building initiatives which have already resulted in it using 100% renewable electricity across all its operations. It will continue on its journey to net zero target for direct and indirect emissions for 2035.