Interview: what3words experiencing “exponential growth” in e-com logistics

Innovative addressing technology company, what3words, is experiencing a period of “exponential growth,” revealed Jennifer Christie, the firm’s Logistics and Ecommerce Lead in an interview with CEP-Research, while also sharing more details about new partnerships such as DHL Parcel and plans to gain traction in key international markets.

One new partnership is with DHL Parcel UK. Last week, what3words (w3w) revealed that it had extended its agreement with the delivery firm, so its retail partners can now accept what3words at checkout. Once entered at checkout, the what3words address is then passed on to DHL Parcel UK so its couriers can find and navigate to delivery destinations.

This follows news last year that DHL Parcel UK had rolled out the what3words location technology to its UK Parcel app. This new integration enables UK retailers to enhance the addressing information they capture from a customer at checkout.

“We have worked with DHL Parcel UK over the past couple of years on their consumer facing app,” Christie said. “Customers could go into the app and provide their what3words address, meaning that any delivery from any retailer could use it. But what DHL Parcel UK has done now is go one step further and enable it through all their systems, which means that the retailer can capture it at checkout and then pass it on to DHL.”

Boohoo delivers to w3w addresses     

Meanwhile, the company announced today (Feb 15) that fast fashion specialist Boohoo Group is integrating what3words addresses into the online checkout pages of all its brands to enable “slick and efficient” deliveries for customers.

Customers are now given the option to add a what3words address in addition to their regular street address in their account profiles and at checkout. The information is then passed to delivery partners, allowing for fast and hassle-free delivery to the precise location.

Chris Sheldrick, Co-founder and CEO of what3words said: “Time rarely moves slower than in the hours and minutes spent waiting for an exciting new purchase to arrive, which makes it even more  frustrating when the delivery driver can’t find the right door, or when your order ends up with your neighbour. Adding a what3words address at checkout ensures drivers know exactly where to deliver, getting packages to customers as quickly and efficiently as possible!”

What3words concept

What3words aims to revolutionise the way location is communicated. It has divided the world into a grid of 3m x 3m squares and given each square a unique combination of three words: a what3words address. According to the firm, it’s an easy way to find, share and navigate to precise locations, anywhere in the world. In addition to delivery and e-commerce, the company also provides its technology to the automotive, hotel, emergency services, and other sectors.

For DHL Parcel UK, and other delivery companies, the benefits of what3words technology include drivers being able to find delivery locations at the first attempt, so routes can be better optimised. This improves business efficiency, makes the job more enjoyable for couriers, and emissions are reduced in the last mile too, according to what3words.

Company growth

According to Christie, what3words, which was founded in 2013, is experiencing a period of “exponential growth” currently, with demand for the technology coming from all players in the delivery ecosystem. “In e-commerce and logistics, we have seen exponential growth since the pandemic,” she said. “And we see interest in our technology coming from the end consumers, who proactively just provide what3words addresses in their delivery notes, for example, for deliveries; from retailers who come to us to see how they can add what3words at checkout; and from carriers who are looking to improve efficiencies.

“We have seen a lot of growth in the carrier sector, especially over the past 12-18 months,” Christie continued. “Previously, demand typically came from the end consumers and the retailers in the e-commerce sector, but we are now seeing carriers coming directly to us interested in the technology and recognising the benefits of using it in their ecosystems, especially in the last mile. We are also seeing demand from the software partners working with the carriers, such as Metapack.”

Focus markets

In the British e-commerce and logistics sector, what3words currently works with DPD, Evri, BJS and Parcel Monkey, in addition to DHL Parcel UK. Christie noted that the what3words brand is now well established in the UK and that there is a lot of consumer awareness about the technology. Along with continuing to strengthen its presence in its home market, the company now has plans to gain traction in other countries too.

“As it is a global tool it can be used anywhere and ultimately it is about making it very easy for people to talk about location, wherever they are and whatever language they speak,” Christie said. “The technology is currently available in 54 different languages. Despite its global appeal, we are, however, focusing our efforts on several key geographical markets, including the UK, Germany, India, the US and the Middle East, and then markets like Vietnam and Japan are at an early adoption stage.”

Diverse partners

In the Middle East, what3words works with logistics firms Aramex and APG, while in India the company is working with a growing number of delivery firms including DTDC, Ecom Express, Locus, Interflora India, Sadhev, Gourmet Garden, Shipyaari, Swift, Dorje Tea, Vamaship and Sequel Logistics.

Meanwhile in Germany, what3words works with GLS – the first major delivery firm in the country to enable deliveries to a what3words address, and pickshare. “In the US, we have recently announced AxleHire as a new partner,” Christie noted.

AxleHire, which provides expedited urban delivery, is what3words’ first last-mile delivery partner in the US. The partnership, which was announced in December last year, will see AxleHire’s clients collect what3words addresses from customers and share them within AxleHire’s delivery app, allowing drivers to deliver more efficiently.

Future plans

According to Christie, what3words’ current partners represent “the tip of the iceberg” for the company, with “so much more happening behind the scenes.” She explained: “Our mission is to develop a global addressing standard. For home delivery, addressing is so key and we believe what3words has an important role to play in the future.

“Our goal in the UK logistics market over the next 12 months is to get every one of the major carriers accepting and delivering to what3words addresses,” Christie continued. “We also hope to build momentum in our international markets. We will take what we have done in the UK and apply that at scale in other countries, such as India and the Middle East, to drive adoption and usage.”

Additional tool

Looking at whether what3words will ever replace the traditional address, Christie concluded: “We see it working alongside street addresses, as they still have lots of useful benefits. In many home delivery scenarios, for example, a postcode will get the driver to the door, so there is no need for a what3words address. But for those whose home addresses don’t lead drivers to doors, what3words can be used as an additional tool in the toolbox.

“We also see what3words helping carriers tackle several challenges currently present in the delivery sector, such as demand for cost and efficiency, and improving driver experience. A what3words address can get drivers to precise locations for home delivery first time, rather than them having to walk around a building looking for the door, or even calling the consumer to ask where they should leave a delivery. This reduces delivery time, and in turn reduces cost, and could improve driver wellbeing as they can carry out their job more efficiently,” Christie added.