In the UK Home delivery dominates, with only 5% of parcels delivered to an OOH location. This leads to an ever increasing number of vans on the road. Unchecked the number of vans will increase from the current 130k to 220k as parcel volumes are set to grow by 60% over the next 10 years.
Carriers are facing challenges in the form of tighter regulation, driver shortages, restrictions in low-traffic neighbourhoods (LTNs), and low emission zones. These will only increase as volumes increase.
Out of Home in the UK
To date, UK delivery to out of home has underperformed compared to other international markets. The current out of home delivery networks are scattered, closed networks ill-suited to consumer needs. This lack of availability is a barrier to increased consumer adoption.