The inventor behind revolutionary parcel lockers has long ago conquered the domestic market with its novel solutions to age-old logistics problems. It is now expanding to new European markets and cornering all market niches through acquisitions and strategic partnerships.
When you live in Poland, it’s easy to assume that the ubiquity of yellow parcel lockers called “Paczkomaty,” a home-grown invention, is something unique to Poland. The Kraków-based InPost’s automated parcel machines (APMs) and door-to-door courier fulfillment services for e-commerce merchants may seem a Poland-only service. That is far from the truth, though. For years, InPost has been expanding across Europe, and has ambitions for more.
InPost has rapidly grown to encompass a network of over 20,000 Automated Parcel Machines (APMs) since the first parcel locker was opened in Kraków in 2009. The company is a subsidiary of the Integer.pl corporate group, which has been in operation for over two decades. The innovative concept conceived by Rafał Brzoska, InPost’s founder, is making a significant impact on the global market.
The company’s success is attributed to its high-capacity utilization, which is critical for cost efficiency. The advantage of economies of scale and network effects derives from InPost having 98% of total APMs in Poland, as well as more than 40% of total Polish B2C parcel volumes. This launch pad has allowed for a strong expansion outward from Poland.
InPost is nothing if not innovative in its technology and market strategy, designed to fill out every niche possible and even create a few new ones. Within Poland, InPost has announced one deal after another to expand its market. Earlier this year, in cooperation with Duży Ben, an alcohol retailer and part of the Eurocash group, InPost introduced 100 InDoor parcel lockers owned by the Eurocash Group. By the end of 2023, InPost plans to have a parcel locker in 430 Duży Ben stores. An estimated 100,000 customers utilize the Paczkomat lockers in the retail network. The collaboration includes the development of pick-up and drop-off points (PUDO).
As part of its diversification and ESG strategy, InPost collaborated with GreenWay Poland, which has led to the installation of over 200 electric vehicle charging stations at its logistics centers and publicly accessible DC chargers near Paczkomat devices. By the end of this year, InPost and GreenWay will build a network of several dozen publicly accessible charging points.
“The expansion of the charging network on the premises of our own branches is of particular importance to us due to the decarbonization strategy of the InPost group. We believe that new technologies and trends should be included in city development plans,” said Sebastian Anioł, director of logistics innovation at InPost.
When studying the company’s history, one seems plagued by the same question over and over: “Why has no one thought about this before?” In July, the company introduced a new use case for its parcel lockers at Warsaw’s Chopin Airport, dedicated to safeguarding items prohibited on aircraft. These items can now be securely dispatched to a designated address, allowing passengers to keep valuable items that would have otherwise been discarded during security checks. Situated in the baggage control area near the Fast Track E passage, this Paczkomat has already piqued the interest of 62% of departing passengers at Chopin Airport.
With the successes in Poland, InPost has cast its gaze outward in an ambitious expansion plan. The company has already set a Q1 record for parcel volumes of 132 million, up 18% compared to the previous year.
Throughout 2023, the company plans to install 10,000 APMs, up from 1,500 in 2021. The expansion is driven by growing demand for out-of-home (OOH) delivery services. Some of this growth may be attributed to the pandemic, but it also originates from the nature of OOHs. They have long been proven to be convenient, contactless and a cheap and easy way to handle return logistics.
To meet European demand, InPost launched its five thousandth Paczkomat in the UK back in March of this year. The aim was to change British consumers’ delivery habits by offering convenient and eco-friendly parcel drop-off and pickup options. A claim to mitigate emissions has resonated well with the country amid daily news highlighting environmental concerns.
The UK is by no means InPost’s first European conquest. Back in July of 2021, the company expanded into France by acquiring Mondial Relay, a leading French e-commerce OOH parcel delivery platform. The French logistics firm’s revenues surged 17.4% y/y in 2022 and at the end of last year it operated over 2,500 InPost machines.
As part of its 2023 strategy, InPost has been carrying out expansion projects in Spain, Benelux countries, and Portugal. At Repsol stations in Spain, InPost currently has over 5,000 (PUDO) points and Paczkomat machines, making it the largest network of its kind in the country. With over 50,000 PUDO points in approximately nine countries, InPost is now the largest hybrid out of home delivery network in Europe.
Since e-commerce and logistics are two sides of the same coin, the parcel locker company has been eager to form partnerships with major e-commerce players. It has long been a partner with Poland’s home-grown Allegro, a leading e-commerce marketplace, part of the large cap WIG20 index of the Warsaw Stock Exchange. Now the two companies are setting their sights on the Czech market. Allegro has recently introduced “Allegro International Delivery” in the Czech Republic, a new delivery method that combines the strengths of local partners InPost and WelDo, a Czech carrier owned by Allegro. The initiative is designed to bolster Allegro’s footprint in Europe by offering Allegro Smart! deliveries at no cost for customers in the Czech Republic and providing logistics solutions for sellers in Poland.
InPost manages the initial pickup of packages from local sellers as part of this partnership. This ensures convenience for Polish entrepreneurs selling on Allegro.cz. Allegro International Delivery supplements existing international delivery options on the platform which include DPD, DHL, and Packeta in collaboration with the Polish Post for Czech deliveries.
InPost’s groundbreaking approach to logistics and its ambitious growth strategies have established it as a global leader in the industry. As the company continues to evolve and expand to meet the needs of an increasingly digital world, it is poised to reshape the future of logistics. The group’s expansions, acquisitions, and partnerships are clearly more than just ripping the benefits of the pandemic consumer behavior reshuffling and have proven effective even in the post-pandemic world.
As traditional brick-and-mortar stores close and American giants like Amazon face challenges due to unfamiliar logistics, diverse delivery infrastructures, and customs procedures, InPost has been gaining higher ground in this corner of the world and is in a solid position to capture an even more significant market share in Europe. The future beyond Europe holds exciting possibilities for InPost as well.
