Evri, Royal Mail, and Yodel have placed the UK delivery sector in the spotlight for its financial struggles, leadership shake-ups, and innovations.
These companies are now navigating a landscape full of challenges and opportunities.
Locate2u’s business journalist Sharl Els looks at the latest developments.
Evri has new owners: What now?
Evri, formerly known as Hermes, has long marketed itself as a “cheap parcel delivery and courier service.” However, despite its rebranding effort, the company’s financial struggles have continued to mount.
Rebranding: Hermes, Evri, and now?
In July, Advent International agreed to sell Evri to Apollo Funds. Is there another rebranding on the cards?
Despite these challenges, Evri is making moves to modernize its operations. The company handles more than 720 million parcels yearly, including hundreds of deliveries daily, sending vehicles and vans out on busy roads.
Green logistics with electric bikes
It recently invested $24 million in electric cargo bikes to modernize its fleet and reduce emissions.
This investment is part of a broader strategy to operate more sustainably, a step that could help rebuild its reputation and customer trust.
ALSO READ: New research exposes the UK’s poor state of parcel services
Financial future of Evri
Evri’s future direction under Apollo Funds’ ownership will be closely watched. Apollo Global Management is known for its investments in various sectors, so it brings a wealth of experience in asset management and private equity.
Apollo Funds’ involvement could stabilize Evri or lead to further restructuring.
Royal Mail shake-ups 2024
Royal Mail has been in deep financial trouble for some time. In June, Bulk Mail Claim Limited (BMCL) filed a claim against Royal Mail for £878m ($1.113 billion).
This follows a class action filed by 290,000 of its members, claiming they were overcharged.
New broom sweeps the cleanest
In May, the 500-plus-year-old parcel company accepted a $4.6 billion takeover bid from Czech billionaire Daniel Křetínský. It was the first time a foreigner would own the historic company.
Royal Mail’s not-so-royal financial past
Royal Mail has been a cornerstone of the UK’s postal service for over 500 years. Although many are concerned about its ownership by someone outside the UK, others welcome the new ‘modernization.’
It’s a critical time for the company, as it desperately needs to focus on getting its financials back on track.
However, the situation is further complicated by an investigation launched by the UK government into Křetínský’s background.
New partnerships
In recent months, Royal Mail has shown signs of progress. The postal service has expanded its parcel locker network through a partnership with YEEP! and added over 2,000 electric vehicles to its delivery fleet.
These initiatives indicate that Royal Mail is trying to adapt to changing market demands and improve its environmental footprint, which could help stabilize its operations in the long term.
Yodel goes bigger and better
Handling B2B and B2C, Yodel is carving out a niche in the UK delivery market, particularly with specialized delivery needs.
Yodel recently introduced a new service called Xpect XXL. Now, customers can receive and send delivery of oversized parcels. This service can handle items up to 275cm long and weigh up to 32kg. It also offers deliveries six days a week.
As online shopping grows, the demand for flexible and reliable delivery options for large items is also increasing.
Yodel’s Xpect XXL service positions the company well to capitalize on this trend, providing a valuable service to retailers and consumers.
NOW READ:Yodel’s innovations and expansions: Focus on logistics
About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
Sharl is a qualified journalist. He has over 10 years’ experience in the media industry, including positions as an editor of a magazine and Business Editor of a daily newspaper. Sharl also has experience in logistics specifically operations, where he worked with global food aid organisations distributing food into Africa. Sharl enjoys writing business stories and human interest pieces.
