A proposal for an open Click & Collect network. Its concept is similar to that of the Link system for cash machines/ATMs - operating a shared infrastructure that produces benefits for all parties. In the UK alone we estimate that an equivalent cooperative network for delivery companies could generate $40 billion value and reduce the number of delivery vans on the road by 25,000.

1. An open network for Click & Collect
UK report
JohnBrown@YorBox.com
+44 7766110138
© Copyright YorBox 2017
- Illustrative -

2. CONTENTS
SUMMARY
FINDINGS
Online Shoppers (Consumers)
Etailers
Click & Collect operators (C&Cs)
Delivery companies (Carriers)
Communities
CONCLUSIONS
An effective C&C network
• Consumers
• C&Cs
• Value creation
RECOMMENDATIONS
YorBox C&C network
• Consumer design / promotion
• Technology
• Organisation
SUMMARY
REFERENCES

3. YorBox.com
UK SUMMARY
$40 billion value and 25,000 fewer trucks would be the result from forming such a network in the UK:
Online shopping continues its double-digit growth in many countries, despite the high levels of consumer
dissatisfaction with available delivery options. Click and collect (C&C) is offered by many service providers in
most countries and offers considerable benefits to all parties, yet it remains woefully under-used compared to
potential demand. This is primarily because the C&C option is too fragmented for consumers’ convenience.
In the UK 75% of online shoppers have used Click & Collect, but only 8% of all parcels get delivered this way. A
substantial number would regularly opt for this option if an effective network existed. For consumers this will
require all five of these critical factors to be present:
1. Open for use with any etailer or carrier
2. Local to consumers’ home, work or shops
3. Late opening hours for access
4. Awareness by consumers at online checkout
5. Price – lowest of shipping options
The most efficient way of establishing this would be to organise some or all of the existing 30,000 C&C locations in the UK
into a single, cooperative network (just as Visa’s Link platform enabled cash machines to become a common, shared
network for the banks and any customer with a Visa card)
Consumers
$ 5 billion
Etailers
$ 10 billion
C&C's
$ 11 billion
YorBox
$ 1 billion
Carriers
$ 13 billion
Communities
25,000 fewer
trucks

4. YorBox.com
UK MARKET
Online shopping stands at £82 billion and is growing at 9% annually,
generating 1.15 billion parcels per year
Source: Reference 2
255.7
169.6
244.5
158.5
186.3
133.7
161.3
133.9
150
101.5
105
65.1
60.8
51.3 31.1
27.5
25.3
20
24.5
20.1
10.6
8.8
Clothing Music Food Books Health Electricals Other Homewares Toys DIY Sport
2013 2018
Number of deliveries (m) per year by product type

5. YorBox.com
FINDINGS
CONSUMERS ETAILERS C&C POINTS
CARRIERS COMMUNITIES
show strong support for additional
delivery options (Click & Collect)
that are not being met by
the market.
are losing potential revenue
from checkout abandons due
to unsatisfactory
delivery options.
are not achieving potential
usage due to not satisfying 4 key
factors for consumers.
are facing significant cost
pressures as residential
deliveries increase.
are suffering increasing congestion
and pollution from additional
residential deliveries.

6. YorBox.com
Source: Reference 2
Use Iess Use more
Delivery to a locker or collection point
Delivery to your home via a courier
Delivery to your home via Royal Mail
Collection from the Post Office
Collection from courier’s depot
5.6 18.5 +12.9
+9.9
+6.2
+5.6
+4.6
+3.6
-3.3
-3.3
-3.9
-4.4
-8.3
19.4
10.6
10
10
12.5
7.4
7.7
6.8
7.4
6.2
9.5
4.4
4.2
5.4
8.9
10.7
11.0
10.7
11.8
14.5
CONSUMERS show strong support for additional delivery options
(especially Click & Collect) that are not being met by the market
Percentage of consumers considering using different delivery methods over the next year, compared to
last
Delivery to the shop you ordered it from, by
Click & Collect
Delivery to your home via the retailer’s
own van/lorry
Delivery to a different shop to the one you
ordered it from, by Click & Collect
Delivery to a neighbour/friend’s home via
Royal Mail
Delivery to a neighbor/friend’s home via a
courier
Delivery to a neighbor/friend’s home via the
retailer’s own van/lorry

7. YorBox.com
0%
10%
20%
30%
40%
50%
60%
70%
80%
18-26
62%
27-38
58%
39-52
55%
53-64
43%
65+
38%
Reasons why delivery options are unsatisfactory
… and shipping costs are a huge factor, and rarely transparent to customers
Shipping News
As sales have grown at Amazon, so too have package delivery costs.
Net sales
$100 billion
Source: the company THE WALL STREET JOURNAL.
Shipping cost
$10 billion
0
2014 ‘06 ‘08 ‘10 ‘12 ‘14
20
40
60
80
$89.0B
2014 ‘06 ‘08 ‘10 ‘12 ‘14
0
2
4
6
8
$8.7B
0%
20%
40%
80%
60%
100%
UK US France Germany Spain Netherlands
75%81%79%
86% 82%
95%
Too expensive
Delivery would take too long
Not free
I wanted it today (not available)
Other
UK US France Germany Spain Netherlands
COUNTRY
62% 57% 56% 52% 69% 57%
40%
32%
26%
11%
4%
4%
5%
37%
32%
29%
11%
8%
5%
48%
26%
29%
14%
12%
8%
7% 7%
42%
30%
26%
12%
19%
10%
7%
53%
33%
35%
15%
8%
12%
4%
48%
32%
38%
11%
7%
9%
8%
3%2%5%2%2%2%
Source: Reference 3
ETAILERS are losing potential revenue from checkout abandons due to
unsatisfactory delivery options…
Consumers who have not completed an online order
because of unsatisfactory delivery options (By age)
Delivery was not guaranteed by a
certain date
I wanted to select a certain day
(not available)
I wanted to pick up from my local
shop (not available)
I wanted to pick up in store (not
available)
Consumers who want to see delivery options displayed
on the product page (By country)

8. YorBox.com
Open Local Hours Aware
Amazon
John Lewis
UPS
DHL
Post Office
Collect +
InPost
Doddle
Click & Collect points are not achieving potential usage due to not
satisfying all 5 key factors for consumers
DEMAND - Over two thirds of UK etail shoppers have used click & collect over the past year and
surveys show a demand for this option, yet only 8% of deliveries are currently made this way.
For a large percentage of shoppers to consistently choose click & collect, all 5 of
the following must be in place :
1. A consumer’s local C&C must be OPEN to them for use via any etailer or carrier
2. A large number of locations so that most consumers have a choice of a LOCAL C&C
3. C&Cs must be open for extended HOURS, evenings and weekends.
4. Top-of-mind AWAREness of the C&C option must be high when online shopping.
5. C&C must be the lowest PRICE shipping option
SUPPLY - Despite there being over 30,000 C&C points in the UK,
none of the existing operators satisfy all 5 factors that are
necessary to promote broad and consistent usage.
Open
AwareLocal
Hours
Price

9. YorBox.com
1
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
1.5 2 2.5 3 3.5
Packages per stop
$ per delivery
* Source: Value Chain Model – Courier Costs
0
1
2
3
4
5
6
7
Revenue
6.17 2.67
0.81
2.70
Non-delivery
cost
Delivery cost Profit/loss
Business deliveries
Residential deliveries
Revenue Non-delivery
cost
Delivery cost Profit/loss
0
1
-1
-2
2
3
4
5
3.59 2.18
2.80
-1.40
2010 2015 2020
45%
55%74%
26%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
61%
39%
Business
Residential
CARRIERS are facing significant cost pressures as
residential deliveries increase
For example: Where a carrier used to deliver say, 3 packages containing 36 pairs of shoes to a high street shop, they
might now deliver only 2 packages to the shop and the other 12 pairs in single packages to 12 residential addresses.
The same amount is being delivered but in a much more time-consuming and expensive process.
The main driver of delivery cost is the
number of parcels per delivery stop*
An average 3 packages per stop for business
deliveries and 1 for residential generates very
different profit profiles for each type of delivery
Pressure on carrier profitability will increase
further as the shift to online shopping /
residential delivery continues

10. YorBox.com
Boris Johnson calls for more “click and collect hubs” to combat London congestion
Source: reference 6
Singapore IDA announces nationwide common infrastructure of “click and collect ” lockers
COMMUNITIES are suffering increasing congestion and pollution from
additional residential deliveries
Post & Parcel, Friday, February 5th, 2016
London’s former mayor, Boris Johnson, called on the transport and parcel delivery industries to help reduce city
congestion by “building up a more sensible system whereby click and collect stores and hubs are in people’s
neighbourhoods”.
Johnson said that London’s community of office workers are increasingly doing their shopping online and arranging
for their purchases to be delivered at work. And he said that, while he understood how “amazingly convenient” this might be
for the online shoppers, it was “unquestionably causing congestion because you’ve got so many deliveries now on the streets
of London”.
Post & Parcel, Wednesday, July 27th, 2016
There are plans to solve this problem by placing lockers near people's homes, Deputy Prime Minister Tharman
Shanmugaratnam said yesterday, adding that Singapore would likely be the first country to do this nationwide.
While there are many players in last-mile delivery, what would really help the industry is common infrastructure, Mr Tharman
said. So the Infocomm Development Authority and economic agencies are working with businesses on these "federated
lockers" for small parcels. "It will be implemented in areas with higher demand first, before we scale this up in
neighbourhoods around the island to create a nationwide common parcel locker system. Some companies, including
SingPost and logistics start-up Ninja Van, have started their own locker systems, but Mr Tharman noted it would be
impractical and costly if each company were to have its own lockers in each neighbourhood.

11. YorBox.com
CONCLUSIONS
UK example
HOME BOX (e.g. Parcelhome)
HOME DAY/TIME SLOT (e.g. DPD)
CLICK & COLLECT (e.g. Inpost, Doddle)
HOME 9:00-17:00 (e.g. UPS; PostOffice)
1
2
3
4
4
3
1
2
2
2
1
4
0 %
5 %
8 %
87 %
5 %
10 %
35 % **
50 %
A substantial segment of consumers will use Click & Collect once an effective network exists, ie :
1. Open to all
carriers
2. Local to
consumers
4. Awareness by consumers3. Late opening
hours
Given these 5 factors we project consumers’ delivery preferences and potential usage will change as follows :
CONVENIENCE
RANKING*
COST/PRICE
RANKING
VALUE
RANKING
CURRENT
USAGE
PROJECTED
USAGE
* Consumers’ convenience in terms of time and trouble to receive a parcel. (including waiting/travelling/queuing/collecting)
** Team analysis based on: consumer value ranking [Convenience/Price] + usage in other countries + % housing types for higher C&C usage
Source : YorBox Value Chain Model
5. Lowest Price

12. YorBox.com
Source: Reference 1
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
UK Germany France Italy Spain Belgium NetherlandsPoland
Locations
20,401
1,320
3,750
501
350
1,080 125
1,730
59
40,800
21,925
3,750 4,715 6,080
12,169
3,780
Lockers
Shops
The most efficient way of establishing an effective C&C network in the
UK would be to organise some or all of the existing 30,000+ C&C locations
(20,401 shops, 1320 lockers, 11,600 Post Offices) into a single, branded
group

13. YorBox.com
CONSUMERS ETAILERS C&Cs+YORBOX CARRIERS COMMUNITIES
In the UK alone $40 billion value would be realised by all parties as a
result of forming a cooperative C&C network:
Convenience
- Proximity
- Time of day
- Wait time
Security
Low price / high
value
Simplicity
$ 5 billion
Shipping cost
savings
Customer
satisfaction
Increased
revenue from
new and
existing
customers
$ 10 billion
Simple to
operate
Increased
parcel volume
Additional
footfall
revenue
$ 12 billion
Maintain B2C
market share
Improved service
through fewer
non-deliveries
Significant cost
reduction / profit
improvement
$13 billion
Fewer trucks in
neighbourhoods
= lower
congestion
+ energy and
pollution saving
25,000 fewer
delivery vehicles
Source: YorBox Value Chain Model

14. YorBox.com
RECOMMENDATIONS
Establish YorBox, a network of C&C points that will:
Define network
standards designed
for consumers’
parcel delivery and
return needs.
Fund and promote
consumer
awareness.
Manage supplier
and partner
relationships.
Be organised as an
association that is open
to all carriers/C&C
companies

15. YorBox.com
For example:
Awareness – YorBox brand to be aggressively promoted and C&C collection options to
be offered by etailers in a simple service/price matrix format, eg :
Same Day Next Day 2 - 5 Days
Collection shop 8am-7pm
Collection lockerbank 24/7
Home locker 24/7
Home time slot
Home 9am-5pm
n/a
Free
Free
$5.00
Free
Free
YorBox will - define network standards designed for consumers’
parcel delivery and return needs
Open - the C&C network to be open for consumers to use with any etailer or carrier
Local - for at least 80% of the population to be within 500 meters of a C&C location
Hours – C&Cs to be open for a minimum of 6 days per week until 7pm
YorBox options
$4.00
$6.00
n/a
n/a
$6.00
$6.00
$6.00
$7.00
$5.00

16. YorBox.com
Source: Reference 3
0
20
40
60
80
100
18-26 27-38 39-52 53-64 65+
54% 52%
42%
25%
17%
0
20
40
60
80
100
UK US France Germany Spain Netherlands
79% 81%
86%
82%
95%
79%
YorBox - best value, convenient … and environment-
friendly
YorBox will achieve high consumer awareness with a significant
marketing spend as well as by working with software suppliers to
promote the YorBox option on etail sites
Figure 6a: Consumers who have broadcast a positive
delivery experience on social media (By age)
Figure 6b: Consumers who want to see delivery options
displayed on the product page (By country)
Source: Reference 3

17. YorBox.com
https://inpost.co.uk https://www.starship.xyz http://www.parcelhome.com
TECHNOLOGY - Emerging options for the last-mile include
lockerbanks, driverless vehicles / drones and home boxes.
Post & Parcel, Wednesday, March 2nd, 2016
Swiss Post has announced that it is aiming to develop an “Internet of Things”, by setting up a network based on LoRaWAN
(Long Range Wide Area Network) technology.
Swiss Post explained why the project was important to a postal operator, and its customers: “This technology makes it possible to
connect a diverse range of objects and devices (vehicles, parcels, letter boxes, etc.) to the Internet at very low cost and with minimal
energy consumption. This would enable Swiss Post to offer its customers innovative and intelligent services. Unprecedented business
opportunities are arising from the ongoing miniaturization of sensors and their cost-effective operation.”
Source: Reference 6

18. YorBox.com
Phase 1: Network association
Phase 3 : Technology platform
YorBox can evolve from an initial position as a network association to
become a technology platform for last-mile logistics
YorBox.com
YorBox.com
Phase 2: Locker network
YorBox.com

19. YorBox will manage supplier and partner relationships -Illustrative-
Carrier
Partners
C&C
Partners
Technology
Partners
Partnership Agreement
YorBox Standards
YorBox Advertising
Define YorBox
hardware and software
platforms
Integrate software
Source outlets
Agree standards
YorBox.com

20. YorBox.com
Carriers Other Investors
YorBox
Operating companies
YorBox could be primarily funded and owned by a group of cooperating
carriers (who would receive a profit distribution based on their network usage - in a relationship
similar to that which Visa Europe had with its member banks – see below*).
* The Visa analogy
In the 1970’s a similar situation existed in the personal banking sector. Individual banks introduced cash machines (ATM’s) to
provide convenience to customers and to reduce cost ; but the concept didn’t really take off until this disjointed network was
linked via the cooperative network system Link, and the brand developed by VISA.
Other funding / ownership options could include :
• C&C operators cooperative
• Single carrier or C&C operator
• Independent infrastructure investor
• Government – regulatory
• Government – public/private infrastructure

21. • 85% of the population within 500 meters of a YorBox location
• YorBox locations open at least 6 days per week until 7pm
• YorBox price to consumers most often offered as ‘free’
• High awareness from $20 million annual marketing budget
• 25,316 YorBox Click & Collect points
• $70 million initial funding
• 583 million parcels handled via YorBox
• $146 million revenue
• $1.5 million to YorBox Environmental Social Enterprise
• $11 million distribution to UK carriers based on their YorBox utilisation
• $104 million profit before tax
Source : YorBox Value Chain Model Year 5
YorBox UK projections

22. YorBox.com
SUMMARY
3. $40 billion value and 25,000 fewer trucks on the road would be realised as a result:
FINDINGS
CONCLUSIONS
RECOMMENDATIONS
Establish YorBox, a network of C&Cs that will:
CONSUMERS show strong support for additional delivery options (eg click & collect) that are not being met.
ETAILERS are losing potential revenue from checkout abandons due to unsatisfactory delivery options.
C&Cs are not achieving potential usage due to not satisfying 4 key factors for consumers.
CARRIERS are facing significant cost pressures as residential deliveries increase.
COMMUNITIES face increasing congestion and pollution from additional residential deliveries.
1. A substantial segment of consumers would use C&C options if an effective network existed. For consumers an effective
network requires all five critical elements to be present:
2. The most efficient way of establishing this would be to organise some or all of the existing 30,000 C&C locations in the UK into
a single, cooperative network.
3. $40 billion value would be realized by all parties as a result of forming a cooperative C&C network in the UK
Define standards designed for consumers’ parcel delivery and return needs.
Fund and promote consumer awareness.
Manage supplier and partner relationships.
Be organised as an association that is open to all carrier/C&C companies and owned/managed by them.
1. Open for use with any etailer or carrier
2. Local to consumers’ home, work or shops
3. Late opening hours for access
4. Awareness by consumers at online checkout
5. Price – lowest of shipping options

23. YorBox.com
REFERENCES
1. Apex Insight
https://www.apex-insight.com/product/european-parcel-shops-locker-networks-market-insight-report-2016/
2. Barclays
https://www.home.barclays/content/dam/barclayspublic/docs/BarclaysNews/2014/September/the-last-mile-report.pdf
3. Metapack
http://www.metapack.com/report/delivering-consumer-choice/
4. Ystats
https://www.ystats.com/product/europe-b2c-e-commerce-delivery-2015/
5. UPS
https://pressroom.ups.com/mobile0c9a66/assets/pdf/pressroom/infographic/CRA%20UPS%20POS_Infographic.pdf
6. Post and Parcel
http://postandparcel.info/category/news/