German same-day delivery company Liefery has massively increased its parcel volumes by over 50% between March and June this year, boosted by the coronavirus pandemic, and is expanding ‘green deliveries’ with electric vehicles and cargo bikes in Berlin.
Liefery, in which Hermes Germany owns a majority stake of 68%, recorded shipment volume growth of over 56.5% across all segments from March to June as consumers increasingly switched to the internet for shopping. Pharmacy deliveries soared by a dramatic 235% during the same period.
The record high runs through all customer groups equally, according to the company. Apart from pharmacy deliveries, particular growth drivers include groceries, cooking boxes, as well as drugstore and fashion items. In the period from June 2019 to June 2020, the increase in shipment volumes was even stronger at 119%.
An evaluation of Liefery’s internal figures clearly shows that the importance of same-day and next-day deliveries within a certain time slot has significantly increased in online trade.
“Basically, the logistics industry benefits from the changed consumer behaviour and the associated increase in parcel volumes this year. From March to June alone, we recorded an increase in parcel volume by more than half. However, we also had to adapt to challenges and cope with an extremely high level of parcel volumes on a permanent basis," Nils Fischer, CEO and co-founder of Liefery, explained.
Consumers expect fast delivery and stop orders if not available
Liefery cited a recent publication by McKinsey according to which consumers nowadays expect their parcels to be delivered within one day and increasingly make their purchase decisions based on the delivery time. According to this, 46% of all customers surveyed break off the order process because the delivery time is too long for them or because it is not specified at all. More than a third (34%) of customers even abstain from the purchase if the delivery time is too long.
Liefery is already preparing for a further increase in the coming months. A recent study by Rakuten Advertising shows that 85% of Germans are not planning any savings on Christmas shopping this year while 32% even want to increase their budget of the previous year. The majority of Christmas shoppers rely on online shopping with 52% of those surveyed buying more and more online, many of them for the first time.
“This year, we expect a further sharp increase in parcel volumes in the run-up to Christmas. We are currently preparing intensively so that nobody has to wait longer than usual for their Christmas present,” Fischer said.
Fewer CO2 emissions in Berlin
To ensure low-emission deliveries of parcels and larger deliveries in metropolitan areas, Liefery will deploy five electric cargo bikes for same-day and next-day deliveries in Berlin for one year, in cooperation with the e-mobility start-up ONOMOTION (ONO).
The bikes will start their tours from a micro-depot and feature the logos of various Liefery clients. The two companies already worked together in a four-week pilot project last year as Liefery delivered HelloFresh cooking boxes with ONO bikes.
“ONO's e-cargo bikes offer an enormous opportunity to significantly reduce the number of traditional delivery vehicles with internal combustion engines on our roads – and thus to significantly reduce pollution from emissions and noise in city centres. However, in order to optimally use the potential of the bikes, cities have to invest more in expanding their cycling infrastructure. A CO2-free delivery of goods is not free of charge,” Fischer said.
Electric cargo bikes 20% more efficient than conventional vehicles
Liefery claims that last-mile deliveries via electric cargo bikes are up to 20% more efficient compared to conventional vehicles. “When there are high traffic volumes, our deliverers can use cycle paths and do not necessarily have to look for a parking space. Parking in the second row can also be avoided by using the cargo bikes,” he added.
The Pioneers Edition of the ONO cargo bikes PAT (Pedal Assisted Transporter) is equipped with two exchangeable batteries from GreenPack and digital fleet management features. The two robust electric motors can be switched on in stages, and a built-in reverse gear makes it easier to maneuver in tight spaces in city traffic.
The loading volume of the exchangeable cargo units is around 2,000 liters, so that the capacity of a conventional van can be replaced with four tours. In the inner-city area, the ONOs are used in combination with micro-depots placed in strategic area in a city. The ONO bike is considered a pedelec and can be driven without a driver's license.
Green deliveries for ASOS
Apart from electric cargo bikes, Liefery has been making emission-free deliveries via electric vehicles by Tropos Motors Europe in Berlin since March as part of its cooperation with online retailers ASOS.
During the pilot phase with two Tropos ABLE vehicles, about 2,000 parcels were delivered successfully saving about three tonnes of CO2. The two e-transporters that now feature ASOS design covered a distance of more than 15,000 km in total. This corresponds to around 90 tours with conventional diesel vans that could be replaced in this way.
As ASOS’ exclusive logistics partner for more than two years, Liefery delivers across all metropolitan areas across Germany on behalf of the retailer.
Toni Schindel, Head of Delivery Solutions EU at ASOS, commented on the partnership: “As a premium partner of Liefery in all German metropolitan regions, we are excited to be part of this project. The branded e-vehicles not only provide a highlight for our customers, but also make the deliveries completely emission-free."
