Dec 4, 2024, 3:10 PM
Dec 4, 2024, 3:10 PM

Yodel struggles as rivals poach drivers during holiday rush

Highlights
  • Yodel has faced a capacity crisis during the peak festive period, impacting its operations and service levels.
  • The company alerted clients like New Look and eBay to consider divesting parcel deliveries to other carriers due to significant delays.
  • Yodel's ability to clear backlogs remains impacted by driver shortages linked to competitive financial incentives from rival delivery firms.
Story

In the UK, Yodel, one of the largest parcel delivery companies, encountered significant operational challenges at the onset of the festive trading period. These challenges led to the company advising its major clients, including New Look, Gousto, and eBay, to consider diverting their parcel deliveries to alternative carriers due to Yodel's current inability to maintain promised service levels. The memo issued indicated that the company was grappling with severe backlogs stemming from increased parcel volumes coinciding with the Black Friday and Cyber Monday sales, alongside issues with driver availability as key HGV drivers had reportedly accepted more lucrative offers from competitor firms. As Yodel prepared for a substantial influx of packages, the failure of many contracted drivers to report for scheduled work sharply impacted its service capabilities. The company based its ongoing operational disruptions on the assumption that financial incentives provided by rival companies were luring its committed drivers away from their engagements with Yodel during one of the busiest periods of the year. The confluence of these circumstances resulted in significant processing delays, which hindered the availability of empty trailers for transport and complicated driver scheduling. Yodel conveyed the seriousness of its capacity crisis in communications with clients, indicating it could not guarantee the usual 24-hour delivery service. In an effort to manage the situation, the company urged clients to reduce their planned parcel volumes for the week and to explore options with other delivery providers. This request reflects the heightened demand for delivery services during the holiday shopping season, coupled with an inadequately prepared logistics framework on Yodel's part. The company has been grappling with operational difficulties for several months, having come dangerously close to financial collapse earlier in the year and requiring emergency funding. Despite the current struggles, a spokesperson for Yodel mentioned that efforts are being made to adjust collection schedules and mitigate delays. The company expressed gratitude towards clients who opted for a collaborative approach, indicating a commitment to improving service delivery and clearing backlogs. Yodel anticipates resolving some issues by the upcoming weekend, while it continues to handle the surge in volume caused by record-breaking demand for parcel deliveries during the Christmas period.

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