Spring 2009

Following unexpected delays caused by security issues, roll-out of the ByBox network of box banks for receiving consumer deliveries finally started in March; and the company has released the first details of a non-integrated system that should allow any consumer to take advantage of the network.

The first new box bank to be installed in a high-profile consumer location was placed at London's Victoria station, and more were due to follow quickly in other mainline stations in the capital. Chief executive Stuart Miller says that under a deal with Network Rail, box banks should now also start to appear in half a dozen other major cities such as Birmingham, Leeds and Manchester.

Miller says a parallel plan to position box banks on high streets is also still proceeding, but will follow slightly behind the programme of installation in commuter railway stations.

Initially the company is providing full integration with what he terms 'a handful of innovative retailers', who will offer delivery to a selected box bank as an option on their web sites. The first to go live in April will be Schuh, the fashion retailer. These customers will provide 'the green shoots of exposure' for the system, Miller says.

 

However, an alternative marketing package promises to accelerate take-up. This will be called MyByBox, and will not require any integration with retailers. Consumers will pay a modest subscription fee to join MyByBox, which they can do online, plus a transaction fee (possibly up to £5) per consignment. When they are shopping on the internet they will quote a unique account number and enter the ByBox national hub as their delivery address.

ByBox will consolidate goods at the hub and deliver them to the box banks selected by consumers, sending them email or text alerts when the goods have arrived.

Miller acknowledges that this arrangement means consumers effectively pay twice for delivery, and may sometimes have to wait an extra day for their goods, 'but for many people, certainty of receipt is paramount, and with our system we can guarantee it.'

In any case, he predicts that some retailers will realise that by directing their deliveries through ByBox in the first place, they can reduce these costs and shorten the lead time.

Although the roll-out of new box banks has been relatively slow, ByBox points out that its business-to-business network of 350 box locations is already in place, and these will form the backbone of the consumer network.

The consumer service is being given a 'soft launch' with selected users, building up to a full service later in the year.