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| Newsletter 62 | Yodel tempers price hike with service improvements
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20 April 2012

Yodel tempers price hike with service improvements


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Following the warning last week of delivery charge increases from carrier Yodel’s chief executive Jonathan Smith, the company has announced an extensive range of service improvements that it hopes will temper the impact.

The company has already indicated that it plans to move to a six-day week, increasing to seven days during December, and it plans to remove premium charges for weekend deliveries. It will also introduce standard pricing across the UK, including highlands and islands.

Shoppers will receive email and SMS delivery updates as standard, and the company says it will offer what it calls "time slot advice", apparently giving an indication of when a parcel might arrive.

A simpler online tracking service is being developed, and call charges to the company’s customer service department are being dropped.

Smith revealed in a series of interviews that Yodel will be looking for delivery charge increases of at least 10 per cent as part of a bid to move into profit. He is quoted as saying: "We have no choice. We currently have a model that isn’t profitable."

However, wilder reports that home shopping costs will soar as a result seem somewhat exaggerated, since delivery charges represent only a moderate proportion of most home delivery transactions, and in any case are often partly or wholly absorbed by retailers. So the true impact of this move is not yet clear.

 

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