High Density Parcel Locker Network
11th November 2024
At the recent Parcel + PostExpo Exhibition in Amsterdam Logistics Business spoke to Gary Winter, VP Global Strategic Initiatives at Parcel Pending by Quadient, about the boom in parcel locker networks in Europe.
Logistics Business: With the parcel industry growing, how is Quadient differentiating itself from its competitors?
Gary Winter: “Differentiating in the locker industry is quite challenging right now. At Parcel+Post Expo 2024, for example, we saw more than 50 locker companies, all offering products that may look very similar on the surface. Digging a little deeper, however, you find that the industry is essentially divided into two camps. Many companies use lockers powered by solar energy and battery-operated systems, offering limited features without the need for electricity.
“Quadient, on the other hand, takes a different approach. Our lockers are powered by electricity, coming equipped with advanced features, including screens and other unique capabilities. Two standout features are the built-in label printer, which is included in every locker we deploy in open networks, and the Dropbox system. The Dropbox allows for greater consolidation, enabling efficient returns and C2C shipments. These patented features are what truly set us apart from the competition. We have a network of more than 2,000 lockers across the world, and are rapidly growing our UK presence. In the last few months alone we announced exciting deals to install lockers at Northern Rail train stations, and on site at Co-Op stores.”
Logistics Business: Are there any challenges to overcome as you grow your network of lockers?
Gary Winter: “We need to be selective when choosing locations, complicated by the fact that there’s currently a “race for space” in the UK. High-traffic locations are in demand, and several companies are competing to install lockers in these areas without paying high rental costs. Our customers, the carriers, need economically viable locations, and we earn revenue by charging them for access to our lockers. We have to ensure that we meet the needs of both the carriers and the locations, which is why balance is so important.”
Logistics Business: How do you see the “race for space” panning out?
Gary Winter: “I think this will be more about strategy than technology. Once one company installs a locker, competitors often feel the need to follow suit. It’s similar to the early days of ATMs, where each bank had its own machines in branches, and customers had to find their specific bank to use an ATM. Eventually, the networks linked up and machines could be used by customers of different banks. We’re already ahead of that curve. For example, our lockers can be shared by multiple carriers — Royal Mail, DPD, UPS, and others — all using the same locker system. We own and manage the lockers on behalf of everyone. This open, shared approach is key to our strategy.
“In the future, I expect city regulators and even national governments to demand fewer locker installations in crowded areas. Instead of multiple companies installing separate lockers, they’ll likely push for one central locker bank that everyone shares. The question will then be: who gets to provide that system? We believe Pacel Pending by Quadient is in a strong position to be that provider.”
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