Royal Mail expands parcel locker network with Yeep! partnership

Royal Mail will expand its network of parcel lockers through a strategic partnership with Yeep! and plans to introduce its own network next year.

This expansion aims to strengthen its presence in the fast-growing out-of-home package market, driven by the surge in online shopping.

The collaboration with Yeep! will start in January! gives Royal Mail customers access to more than 1,000 additional parcel lockers. The Yeep! network is expected to expand to 3,000 lockers by the end of next year.

Martin Seidenberg, CEO of International Distribution Services (IDS), parent company of Royal Mail, highlighted the importance of this partnership in increasing the convenience of sending and receiving parcels. The out-of-home market, including parcel lockers, is considered a key growth area for investors.

EP Group, which is in the midst of a £3.6bn takeover bid for IDS, believes Royal Mail will need around 20,000 lockers, including its own network, at an estimated cost of £200m to £400m. EP Group declined to comment on the details.

After the Jaap! partnership, Royal Mail will offer more than 21,000 parcel delivery locations, including more than 2,500 lockers, 11,500 post office branches and 5,000 Collect+ stores. This expansion builds on Royal Mail’s agreement with PayPoint in February, providing access to the Collect+ network at thousands of local stores.

Yes! introduced Britain’s first battery-powered parcel locker last year, which requires no groundwork or wiring and can be installed within an hour. This innovation is in line with Royal Mail’s strategy to remain at the forefront of customer convenience and market trends.

Seidenberg stated: “We want to be present in that market and we also want to be seen on the streets… It’s part of us that we show that we are innovative and that we are moving with the trends and that we are there for the customers. “