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InPost continues Canadian expansion

Refrigerated units debuting next year will address the click-and-collect grocery model, says CEO
12/14/2015

Parcel locker service InPost plans to add refrigerated units to its product line late next year — a move its CEO believes will help it make further inroads in the grocery sector as the click-and-collect model gains in popularity.

“People can order online, pull up to an locker, grab their groceries and drive away,” says CEO Tony Jasinski, who expects the temperature-controlled units – which offer frozen, chilled and ambient zones – to debut in Canada in either Q3 or Q4 of 2016.

Jasinski says the company has “perfected” the temperature-controlled units by making them more energy efficient and incorporating stainless steel construction and self-cleansing options. The refrigerated units are currently being piloted in Poland in advance of a rollout in the company’s leading markets (the U.K., France, Italy, Russia).

READ: Will click and collect compute?

InPost has deployed more than 4,000 of its standard parcel lockers in 21 countries, and boasts more than 20 million customers worldwide. Its partner roster includes more than 8,000 e-commerce companies and what Jasinski describes as “a few hundred” courier companies, mostly in Europe.

The units are located in public places for safety, with three security cameras recording at all times. People receive a text notification when their package is ready to be picked up, and open the unit with a number or QR code. InPost boasts that users can pick up their package in as little as seven seconds.

InPost currently has 80 machines deployed throughout the GTA, and has obtained approval to install units in 10 sites within the Montreal transit system. It is also conducting surveys in Ottawa, with Calgary, Edmonton and Vancouver – and possibly Halifax and Quebec City – on tap for next year. The company’s stated goal is to have 1,000 units deployed across the country by the end of 2016.

READ: Loblaw and Uber team up on click-and-collect offer

The company launched with an estimated 115 million Euros in funding, including a US$36.7 million supplied by Poland’s state bank BGK that was earmarked specifically for the rollout.

It has partnered with Loblaws, Petro-Canada and Shell, all of which are providing space for InPost lockers on their property. While the company does not currently offer a grocery component, Jasinski says the InPost lockers are capable of generating additional foot traffic of anywhere from 7% to 50% at stores where they are located.

“Gas stations love this because there’s only so much gas they can sell,” says Jasinski. “Chances are you’re going to get out of your car to pick up a parcel, and you might stop at the store for an ice cream, pop, whatever.”

READ: When supermarket shoppers pick up

There is also added convenience for InPost users, says Jasinski. An estimated 52% of InPost users currently pick up parcels outside of standard business hours, including 35% picked up between 6 p.m. and 9 a.m., and 17% picked up on weekends.

The InPost units are currently being manufactured in Poland, although Jasinski says that the company has sourced three potential Canadian manufacturers that will be responsible for the balance of its rollout in Canada.

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