Yodel reports solid growth as demand for delivery services “remains as strong as ever”

UK-based independent parcel delivery company Yodel has released its H1 2022 (July – December 2021) figures, which reveal an 22% increase in overall volumes YoY following several strategic investments.

A strong Christmas trading performance in H1 2022 also saw a 34.9% increase in volumes in the six weeks leading up to Christmas Eve, compared to the same period two years ago. However, overall volumes were down 1.6% compared to H1 2021, when the UK was subject to Covid-19 restrictions.

The H1 2022 performance comes off the back of a strong FY 2020/2021 (ending June 2021) which saw volumes increase by 28% YoY and revenues increase by 31% to £563 million, up from £430 million in FY20.

Yodel’s strong volume and revenue growth since the start of the pandemic follows several years in the red for the company. However, due to rising demand for online shopping and a number of strategic investments in operations and customer service, Yodel has managed to turn its business around.

“The first half of FY22 has demonstrated that despite ongoing uncertainty caused by Covid-19, demand for e-commerce and doorstep delivery services remains as strong as ever and that Yodel is perfectly positioned, and prepared, to cater to changing customer needs,” said Mike Hancox, CEO of Yodel.  

Operational investments

In October 2021 Yodel scaled up its capability to handle increasing volumes and a wider range of specialist items with a £1 million investment in a new sortation system, which is specially designed to handle delicate and irregular shaped parcels. The “Merlin2” system was implemented in Yodel’s Shaw sorting centre near Manchester in the UK.

The system can process up to 2,900 one-metre-long items per hour and works alongside the larger fully automated sort at Shaw. Merlin2 can handle items up to 1.8m long and 0.9m wide and has significantly increased the speed and efficiency of the ‘out of gauge’ parcel sorting process.

Other key projects include a £13.25m investment in Yodel’s fleet in H1 2022, adding 250 new trailers and 100 tractor units to the company’s network, and the continued development of its Hand-Held Terminal Transformation Programme, which included the roll out of new hands-free devices along with a Digital App for Yodel’s national sortation centres and depots. The company’s Driver App was also upgraded to include image capture for all deliveries to improve service to clients and customers.

Furthermore, the company saw a 50% YoY growth in its consumer-to-consumer service, Yodel Direct. The service, which was launched last year, targets small businesses and enables them to  ship parcels up to 60x50x50cm and weighing up to 10kg. Once they have booked a delivery slot online at www.yodeldirect.co.uk, they can print a label at home or get a QR code to print a label in store.

Customer service

Throughout H1 2022 Yodel continued to invest in innovation to improve customer service levels, leading to “significant reductions in contact per parcel,” according to the company. The most notable of the investments was its updated customer app, which was launched in November 2021. The aim of the update, Yodel noted, was to provide customers with a “more personalised parcel delivery experience.”

The updated app provides customers with the ability to personalise their delivery experience via a dedicated ‘My Account’ section, including being able to pre-select a default safe place at home for delivery if they are not in. The app also offers greater parcel tracking functionality, allowing users to receive push notification updates on the status of their delivery.

Further features will be integrated into the app’s second phase in early 2022, according to Yodel, such as getting updates on parcels via Amazon’s assistant Alexa and taking pictures of a dedicated ‘safe place’ to show the driver. 

Looking forward, Hancox concluded: “In the coming year, we expect to see the greater integration of technology into delivery service business models to improve customer experience across the industry, increasing the efficiency of supply chains to handle larger volumes, as demand for online shopping continues to grow.”