- 27 May 2016
- Transport / Logistics Services
Collect+, the parcel pick up and drop off service co-owned by Yodel and PayPoint, has reported that revenues are up but it still made a loss in 2015 – 16.
PayPoint’s Chief Executive Dominic Taylor has said in a statement about the group’s preliminary results for the year ending 31 March that PayPoint has been in long running discussions with Yodel about the future structure of Collect+. In order to encourage discussions, PayPoint has “temporarily agreed to allow Yodel to charge more for its carrier services to Collect+ and this has caused it to make a small loss”.
The parcel pick up and drop off company has reported a revenue for 2016 of £49.6 million, up from nearly £46 million the year before.
PayPoint’s statement also said, “Within the consumer send market, there continues to be substantial price competition and consequently the Collect+ management team has focussed on developing Click & Collect and returns.”
With major players in the pick up and drop off service market such as Doddle, there is intense competition for a service that is well used by e-commerce shoppers. Though the demand is there and profits can be made, it is subject to fierce competitive pressures and these have in turn made it somewhat harder for Collect+ to make money. Given there is consumer demand, adjustments to the way the company operates may well allow it to succeed and grow. That there is strong competition in the sector suggests that this will be subject to commercial pressures. Being jointly owned and not freestanding unlike its major competitors will allow for some losses without risking Collect+ existence.