Locker companies discuss strategies, innovative technologies and market potential

Leading European parcel locker companies outlined their business models, presented new solutions and technologies, and discussed the sector’s growth potential, especially for multi-carrier open networks, at Parcel + Post Expo 2023 in Amsterdam last week.

Senior executives from big players Quadient, KEBA and Cleveron, as well as from newcomers Yeep!, ARKA, Direct4Me, Bloq.It, Modern-Expo and Omnic, took to the stage in an extensive session at the three-day Innovation Forum. This article reports on the presentations of the first three companies. A second article will cover the other presentations.

Quadient business model

Gary Winter, VP Strategic Initiatives for Parcel Pending by Quadient, explained how the French group (formerly called Neopost) had built up extensive networks in several countries, varying by market and client requirements. These included multi-carrier open networks in the US, Japan and the UK, a shared network with retailer Decathlon in France that is now being opened to other carriers, and a dedicated private network with Purolator in Canada. “We are never going to be a carrier, we are a technology company,” he made clear.

Overall, Quadient has installed about 18,900 lockers in total, including about 10,000 machines in the US, where it acquired Parcel Pending for $100 million in 2019, and about 7,000 in Japan. In Europe, the company has about 1,500 lockers installed at present, with 1,000 in France and 500 in the UK.

Open is best

Winter, an experienced parcel industry executive, highlighted the potential of open networks, citing the “model” of bank cashpoint machines that had started on an exclusive basis per bank but had established themselves worldwide as collaborative networks. “That is the vision where we should get to with parcel lockers,” he declared.

In terms of market potential, the Quadient executive predicted that growth would be driven by consumers making returns and sending C2C parcels as well as collecting purchases. “We are convinced that drop-offs will grow, either as returns or C2C sales,” he commented.

Big in Japan

In Japan, Quadient launched a closed network with Yamato back in 2016 designed to provide a solution for the parcel carrier’s high proportion of failed home deliveries. In 2018, this network was opened up with the addition of rival Sagawa Express, followed later by Japan Post and then DHL Express. The Yamato joint venture partnership was recently extended.  

This network in Japan now comprises 7,000 lockers, with about 4,500 installed in the Greater Tokyo area. These are within a 5-minute walk of 95% of a population of 35 million, according to Winter.

Looking ahead, he highlighted the potential of this open network for C2C sales, given that Japanese consumers barely return any goods but prefer to resell them, thus generating new consumer-driven parcel flows.

KEBA positioning

Another leading European locker supplier is KEBA, which has installed more than 23,000 lockers in diverse markets. Key customers include DHL, Austrian Post, GLS and DPD. Robert Zehetner, VP Logistic Automation, highlighted the Austrian company’s positioning as “a quality provider” with a range of lockers for different customer needs.  

Looking at the sector’s potential, he highlighted the advantages of parcel lockers in terms of sustainability (by reducing transport-related emissions and promoting the circular economy), customer convenience (by being easily reachable) and helping carriers to cope with staff shortages (by making successful deliveries at the first attempt).

Cleveron predicts exponential growth

One country where lockers are already the rule rather than the exception for parcel deliveries is Estonia. “In Estonia, 80% of parcels are now delivered to lockers, not to homes. In Western Europe, it’s the other way around,” Cleveron CEO Arti Kütt told the Innovation Forum.  

Kütt is a strong believer in a bright future for parcel lockers as last-mile delivery solutions and expects exponential growth in the coming years. “There are about 100,000 lockers in Europe at present, mostly as large locker banks. But in 2030 there will be one million lockers in Europe,” he predicted confidently. “People will have lockers within a 300-metre radius.”

Cleveron was a pioneer in the parcel lockers market by launching the Smartpost network back in 2009 but sold this to Finland’s Posti in 2010. Since then it re-positioned itself as a technology development company for lockers, selling to carriers and retailers. Its latest product is the battery-powered Cleveron 354 locker.