Home » Smart locker adoption soars amidst global increase in courier delivery and shipping demand

Smart locker adoption soars amidst global increase in courier delivery and shipping demand

Article by Craig Pitchers, Chief Operating Officer, The Courier Guy

by Media Xpose

Customer demand for an online delivery service that always works is driving growth in the smart parcel locker market and courier industries.The size of the global smart parcel locker market could reach USD 1782.73 million by 2029 growing at a compound annual growth rate (CAGR) of 9.4% from 2022 to 2029, according to Exactitude Consultancy’s recent study and projections. Smart parcel lockers are an innovation in the delivery chain enabling a flexible and convenient delivery process.

Appealing to today’s discerning consumer who wants safe and reliable delivery, smart lockers are an effective solution to delivery gripes like expensive size limitations, lost packages and importantly, waiting around for a delivery to arrive.

Demand for delivery of goods has not wavered despite many disruptions to the global economy and supply chain, such as local loadshedding and the Russia-Ukraine war.

The global domestic courier market is expected to grow to $61,30 billion this year at a CAGR of 11.8%, according to the 2023 Domestic Couriers Global Market Report. The market totaled $54,84 billion last year and is anticipated to reach $93,30 billion by 2027.

Meanwhile, FNB Merchant Services believes the South African shipping sector alone could be worth R400 billion by 2025 as e-commerce and its ease of doing business remain a top priority across the country – and across income brackets. According to the 2022 South African Township CX Report the majority (70%) of the 1400 surveyed had made an online purchase in the last year – up from only 28% in 2021. 

These are trends that are here to stay and accessibility to a simple and safe delivery service for personal goods and online purchases need not come at a premium.  

In 2020, when pudo (Pick Up Drop Off) launched in South Africa it had just 300 smart lockers available to customers but today we have 1100 lockers, with pricing starting at only R50 for the extra-small option. Our expansion is proof of the interest we have received from the public and just how easy it is to use our service.

One noticeable area of growth is small businesses using pudo as a reliable, cost effective and practical solution for their deliveries. With pudo covering city centres and remote regions around the country, it’s possible for all individuals and businesses of many shapes and sizes to use it. You can send an item locker to locker anywhere in the country, that has any weight up to 20kg for just R60,  provided it fits in to one of the convenient pudo lockers. There is also the option for door to locker delivery if required. The pudo app is central to operations and available on any mobile phone, so customers who prefer not to interact with other people don’t have to.

Companies like pudo are changing the delivery game. From retailers who need to ship cheaply to their customers while giving them return and delivery flexibility, to family members in different provinces wanting to easily exchange gifts with one another, any person hoping to get a prized possession to their preferred recipient can do so easily with pudo.  

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