Newsletter 35

Eight years after ByBox first floated the idea of setting up box-bank pick-up points for internet consumer deliveries, the concept finally looks set to become a reality in the UK. And at the heart of the latest initiative is the idea of combining box banks with public phone boxes.

ByBox has signed an agreement to convert up to 1,000 BT phone boxes to hybrid phone box/ByBox pick-up points, starting with 300, which will be going on stream later this year. ByBox's own French factory will build the new installations, which will replace existing phone boxes. A full launch later this summer is planned.

"Call boxes are ideal for this purpose," says ByBox founder Stuart Miller. "They are in high-profile locations, and they already have power and communication links laid on." He has high praise for BT, which has reportedly pushed the concept through with enthusiasm.

The new box banks will represent very public additions to ByBox's existing network of intelligent box banks, which form part of its express service parts delivery system for field engineers. It already has well over 4,000 "doors" at locations such as garage forecourts, and these will also be used in the business-to-consumer network. Altogether the consumer system will have access to 6,000 doors at 300 locations, Miller says.

 

Both figures could increase over time. ByBox already has other as-yet undisclosed plans to augment its consumer box network, and Miller says more doors can be included at phone box locations than have been used in the prototypes – "possibly twice the number". This is because consumer deliveries are thought to be smaller than the parts deliveries for which the current boxes were designed, opening the possibility of back-to-back locker arrangements.

Retail integration will be a key to the consumer system, and Miller says ByBox is already in talks with several major retailers who are keen on using the system. "There's terrific interest out there in the market," he says.

Consumers buying from participating web sites will be able to select a ByBox location as their delivery address during the checkout process. They will then be sent an email or text alert when the item is placed in the box bank, and can open the door by entering a PIN code.

Initially ByBox considered trialling the phone box concept in suburban and semi-rural areas, but since then has switched the focus to busier urban locations where the footfall will be higher.

While ByBox aims to use its own nationwide transport to make overnight consumer deliveries to the boxes, Miller says other carriers will also be encouraged to use them – presumably during the day. "We want this to be an inclusive system, not exclusive," he says. "There's no point in a number of different operators setting up basically similar facilities."

Currently the one other major intelligent UK box-bank operator, Business Direct, is building up a consumer service based on its existing installations at garages and supermarket forecourts. It has not so far announced any plans for boxes in public locations similar to those being developed by ByBox, though it is encouraging such developments under licence overseas.

ByBox has had an earlier generation of consumer box bank in use in Jersey for some years, and more recently won a contract to supply consumer box banks to France's La Poste.

Prices for using the ByBox system are likely to be on a par with current costs for Saturday morning and weekday evening home deliveries, Miller says – which could mean a rate of between £8 and £12. He says this will be seen as "a reasonable premium for an assured delivery". The end-user pricing will of course be in the hands of retailers.

"This is a serious initiative with real commitment behind it," Stuart Miller sums up, adding: "To make this kind of project work, you need the patience to address all the planning consents and operational issues, plus the funds for a seven-figure investment."

He adds: "The main point is that this is not a trial. This is a working system, and it's here now."