InPost’s European Expansion Strategy
Former Sales Director at Inpost
inpractise.com/articles/inposts-european-expansion-strategy
Former Sales Director at Inpost
Interview Transcript
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I'm trying to understand, as this business matures, in five to 10 years, will the locker industry be dominated by a few vertically integrated logistics-to-locker players? Or will a more open system, like what Allegro is attempting in Poland, become the norm across many markets? The reason I ask is whether this matters for InPost in terms of business profitability?
The biggest risk, in my opinion, is in Poland in the future. In other countries, it really depends on how the market will grow with these small networks. The capital expenditure of building the network is very high, and building the operation around it is very expensive, making it a significant bet. InPost has stable fundamental know-how, so they are expanding and utilizing the growth of their current network. New players are not there yet. For example, Allegro has a network of about 2,000 to 3,000 lockers, but the utilization rate is low, and they are losing money daily because they still need to maintain those machines. Betting that they will be eager to double that network or expand into other markets is a high-risk bet.
This is a snippet of the transcript.Contact Salesto get full access.
Right, because they know that if that were to happen, it would ruin their model.
Yes, from the retailer's perspective, it's not just talk. The adoption of parcel lockers has significantly influenced customer behavior in Poland. If you remove the parcel locker option from your website, customers will search on Google for competitors offering the same product with parcel lockers.
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Right, they don't care about which parcel locker specifically, as long as it's available, like in Poland?
No, it needs to be InPost. That's the main case. The drama in Poland is that Allegro is trying to push customers to use Allegro boxes, but there's a lot of negative PR because people prefer the service, not just the locker itself. Only InPost offers nearly 99.9% delivery within 24 hours. Only InPost also has excellent customer service, answering calls within the first 10 seconds, unlike competitors. Customers want that level of service and don't want it compromised.
This is a snippet of the transcript.Contact Salesto get full access.
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