Yodel targets online shopping – but says prices must rise

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Yodel is moving to a six day a week service to meet the needs of the growing online shopping market – and has made it clear that it will be looking price increases at the same time.

Chief executive Jonathan Smith said: “Inevitably these changes will come at a price and we must pass on our reasonable costs. We believe that all parties, once they recognise the benefits that this will provide, will accept the changes as a necessary shift for all involved.”

As well as moving to a standard six day a week operation, Yodel will increase this to seven days during December, with the removal of premium charges for weekend deliveries, and standard pricing across the UK, including highlands and islands.

Shoppers will receive email and SMS delivery updates as standard, including time slot advice and be able to track their parcel using a simplified, online service. Additional queries can be answered by making a free call to Yodel’s customer services, as the current charges are dropped.

The company also wants to extend the number of CollectPlus outlets (its joint venture with PayPoint) from 4,700 to 8,000 within the next three years.

Although exact tariffs for specific retailers will be discussed with them individually, Yodel believes that the explosive growth in internet shopping has led to the delivery market reaching saturation point. Without an increase in charges, carriers will be unable to invest in the kinds of services and product offerings that will support internet commerce in its next phase of growth.

“To ensure best customer service while maintaining a scale of flexibility, which no other carrier is currently able to offer, we recognise the need to change the way we work and invest more in the aspects of our business that impact the consumer.”

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