Post Office Expands Amazon ‘Pickups’ Network

Post office aims to double the number of branches where customers can pick up Amazon purchases and grow parcel business to over £100m


The Post Office aims to double the number of branches where customers can pick up Amazon purchases and grow the nascent parcel pick-up business to more than £100 million.

Chief executive Nick Read will unveil plans this week to rapidly expand its pick up, drop off (PUDO) business, which kicked off in the spring and helped revitalize the post office.

A fierce battle for market share in parcel delivery has erupted after the pandemic boomed in online shopping.

Heading in the right direction: The Post Office estimates the PUDO market could be worth £400m by 2026

Last year a long-term deal ended that restricted couriers other than Royal Mail from using the post office’s 11,500 branches. A trial period for offering click & collect services for Amazon started in March, followed by a deal with DPD in August.

Read will reveal in a speech to employees that the revised service is now in 3,100 locations and is expected to double to more than 6,000 next year.

The state-owned company estimates that the PUDO market could be worth £400m by 2026, and has set a target of acquiring a 30 percent share.

Post Office remained state-owned after Royal Mail was spun off and privatized in 2013.

“Instead of a van making dozens of stops at individual addresses, it only stops once at a post office, and crucially, customers can pick up their packages at a time that suits them, as more of us head back to the office.” Read said this week.

He took over in 2019 from Paula Vennells, also a part-time priest, who spearheaded an IT scandal that wrongly accused postal workers of theft.

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