Budbee, part of Instabee, is making a bold move in the Netherlands by redefining parcel delivery: “We’re no longer doing home deliveries,” says General Manager Jørgen Höppener. The company aims to make parcel delivery both genuinely sustainable and profitable.
Budbee plans to deliver parcels exclusively to its approximately 1,000 parcel lockers nationwide. This shift is expected to significantly reduce the number of trips, alleviate urban congestion, and decrease its carbon footprint. An added benefit is that Budbee can avoid the intense price competition among parcel delivery services, where prices are often driven below cost, compromising people or the environment.
However, I have some critical questions:
- While this is an intriguing move, it prompts debate (as seen in reactions on LinkedIn). Is there truly a price war with delivery services operating below cost, or is Budbee just too small to compete with the major players? Moreover, it’s unclear whether parcel lockers are more sustainable and cost-effective, as this largely depends on how consumers retrieve their parcels. Unfortunately, they are still often by car. For example, a parcel locker pilot with MyPup was discontinued in Utrecht in the spring of 2024.
- Are consumers (and webshops) ready for this change? The Netherlands already has over ten thousand parcel or collection points; some municipalities see these as a solution to the proliferation of delivery vans in residential areas. But how much of this is true versus hype? Over the past decade, customer behavior hasn’t fundamentally changed; nearly 90 percent still prefer home delivery (or to a neighbor).
- Not everyone is eager for a nearby pick-up point or a parcel locker on the sidewalk. Pick-up points can create additional delivery traffic and cause disruptions from parked bicycles and cars during the evening rush of pickups. Similar to the backlash against flash delivery services, this can lead to complaints from residents. For instance, a pharmacy in Amsterdam had to remove a medicine dispensing machine after receiving complaints.
- Parcel lockers have potential if they meet consumers’ needs for convenience, such as proximity, extended hours, and “white label” options. Using shops as locations makes sense, especially in the business market where users might be willing to pay more for secure, reliable service—like service technicians.
The future of parcel delivery will require more than just relying on pick-up points and lockers. I’ll be closely following Budbee’s development, as there’s always the possibility that I’ve overlooked something—perhaps the future does lie in parcel lockers. I’m open to being surprised.
Walther Ploos van Amstel.