UK’s station-based parcel shop trial progressing “really well”
Network Rail has been “pleasantly surprised” by the positive take-up of its trial station-based parcel shop project over the winter season. The UK rail network operator has been running a parcel shop at its head office station in Milton Keynes since early December under the brand “Doddle”.
As members, consumers can have parcels and Internet purchases delivered to a Doddle branch as an alternative address, if they are unable to be at home during the working day to receive them.
So far, the pilot has been available for its own 3,000 staff to use, but the project will be rolled out to the wider public, with plans to expand to stations across the country.
The company has now drawn up a list of 170 stations in London and the South East, which could potentially host branches of Doddle within 12 to 18 months.
Commenting on the trial so far, project director Peter Louden said Network Rail staff had embraced the Doddle idea, with “heavy” footfall particularly in the run-up to Christmas.
“It’s been going really, really well – we’ve been pleasantly surprised by the take-up,” he said. “It’s partly because it’s a Network Rail offering, so we’re not getting too carried away with the results, but one of the good things is that retailers and parcel carriers are seeing the potential.”
Although Network Rail is not revealing names yet, Louden said there has been a great deal of interest from retailers and parcel carriers in using the Doddle network as part of their delivery channels.
“We’re in the final stages of negotiations with four or five carriers,” he said. “We are very attractive to those with an existing network of parcel shops, but those carriers who do not currently have that kind of infrastructure in place are particularly interested.”
Fees for the Doddle service could come from consumers paying transaction fees or membership fees, but Louden said he believed retailers would be prepared to pay fees to ensure higher first-time delivery and improved customer experience, thereby increasing sales.
Carriers could also pay a fee to have Doddle branches as part of their delivery systems, improving the efficiency of last-mile business-to-consumer delivery.
Expansion
Louden explained that the Doddle pilot was intended for understanding the issues of operating the service — including how to maximise the customer experience and get the technology right — rather than assessing consumer take-up.
Network Rail is already working on establishing Doddle branches in London’s Paddington Station and Woking station, south-west of London.
With good results from the pilot so far, Louden said his company has also now identified a list of 170 stations to form the next phase of expansion. Of this maximum potential number, he said he expected in excess of 100 Doddle branches to be up and running in 18 months’ time.
While rival parcel shop networks may have thousands of outlets scattered across the UK, the business model for Doddle is to have fewer outlets, but each would handle very large volumes of parcels for consumers commuting to and from work.
The intention is for Network Rail to make use of “unused or unloved” locations within stations, not prime retail space, for Doddle branches. This might include unused office space, or brownfield locations close to car parks or walkways.
Since “no two stations are alike”, Louden said his team is developing multiple branch formats.
As the network is expanded across the country, he told Post&Parcel that a survey of 1,000 consumers suggested that the best locations for Doddle branches will not necessarily only be in large stations within large towns or cities.
“What our survey found was that consumers are more likely to want to pick up their parcels from their home station, on their way home rather than while they are at work,” he explained. “It means we will have to strike a balance between concentrating the network in larger stations, and offering wider access for people getting home.”
