Brits cool on online delivery tech innovation, Mintel survey

The UK online shopping boom saw courier and express delivery sales increase by 12% to reach £12.6 billion in 2018, according to Mintel research. Last year, Brits sent 3.65 billion packages, up from 3.2 billion in 2017.

However, the marketplace remains hugely competitive, marked by slim margins and a growing expectation to provide more for less. “Looking forward, rising demand for delivery subscriptions brings added pressures; particularly the growing amount of returns, which require extra processing, storage and logistics,” says Marco Amasanti, Retail Analyst at Mintel.

“But for those who remain in the market, the future looks bright. Major players should further consolidate, given continued value and volume growth; both of which show little sign of abating as online retail appears far from reaching its ceiling.”

The research also found that Brits are not massively keen on technological advances in this space. 79% of the 2,000 people surveyed were unwilling to allow a delivery driver access to their home to deliver a parcel when no one is home, while 76% would not allow access to their car boot. Demand for delivery outside of the home and workplace is more promising though. 47% would be interested in this.

“The rise of access control schemes has coincided with the surge in smart homes across the UK. However, they remain in their infancy and much of the consumer base remains unsure of allowing drivers this access. Given this reluctance, there could be an opportunity for smart doors and smart boxes, which through the use of expanding compartments allow couriers to deliver parcels to a secure location without actually accessing a property. However, these remain still largely at a prototype stage,” Amasanti concludes.