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Ukrainians have created a parcel locker startup called Yard Delivery. It is being launched in Riga and has plans to expand to seven more European countries

21 Sep, 2023
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Ukrainians have created a parcel locker startup called Yard Delivery. It is being launched in Riga and has plans to expand to seven more European countries

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The Ukrainian startup is creating a global network of parcel lockers and recruiting couriers through a crowdsourcing model. The first country for launch is Latvia because in Ukraine, consumers are not yet ready for contactless delivery, and "Nova Poshta" effectively monopolizes this market, report dev.ua.

The founder of the startup, Alexander Korniychuk, worked in B2B sales for 10 years and was involved in the development of the parcel locker business. He launched over 5 large networks of parcel lockers. His deep expertise in the parcel locker business and personal contacts with locker network owners in many countries allowed him to realize an idea that is based on utilizing parcel locker networks.

Alexander noticed how quickly parcel locker networks were growing and emerging. He realized that in a few more years, the majority of the population in large cities would have the opportunity to receive parcels in lockers located locally, just a few minutes' walk from the recipient.

Additionally, the growth in the number of food couriers, commonly seen on the streets every day, raised the question of why they mainly delivered food. Researching this issue revealed a problem with courier delivery: the recipient had to be available at the moment when the courier arrived. This realization led to the idea of combining crowdsourcing with parcel lockers.

To finance the project, the founders initially invested and continue to invest their personal funds. Additionally, they have already attracted several investors, one of whom works in the parcel locker business and resides in Riga, where the company will launch by the end of this year. "He knows the market we are entering, understands the service we are creating, and therefore believes in our success," says Tarasyuk. According to him, the team currently needs additional funding for the project's launch, so they have opened an investment round with the goal of raising up to $500,000.

 

 

Currently, the startup's service is in the final stages of development. "Almost everything is ready for the launch in Riga," says Tarasyuk. The unique aspect of Yard Delivery is that the startup utilizes existing parcel lockers, creating a unified global network without the need for construction costs. "In other words, we are accessing the largest network of parcel lockers in the city without investing in their construction," he explains.

Another advantage is the speed of delivery, with a promise of delivery within 3 hours at a significantly lower cost compared to competitors. "According to our calculations, the price for such delivery will be almost the same as regular delivery, but instead of 1-3 days, it will be delivered within 1-3 hours," says Sergey. He explains that maintaining such a low price is facilitated by the crowdsourcing model for hiring couriers, similar to platforms like Glovo or Uber.

He also highlights the software developed by the team as an advantage. "It's a user-friendly mobile app where users can easily arrange delivery in just a few clicks, choose the nearest convenient parcel locker, track every stage of parcel delivery, and receive it without the need for communication with delivery service staff," says Sergey.

Furthermore, the team is creating APIs and plugins that will make it easy to integrate the Yard Delivery service into any online store. "In Ukraine, we are used to ordering and processing everything through our phones, but in Europe, not all companies have developed this direction," he explains.

 

 

According to Tarasyuk, the choice to launch the startup outside of Ukraine was made because people in Europe are ready for such a service, with over 80% of them receiving parcels through parcel lockers. "Plus, in every city in Europe, there are several parcel locker networks, while in Ukraine, we mostly see 'Nova Poshta,' which already provides fast and convenient delivery, though not within three hours, but certainly within one day. In Europe, delivery services are not as modern and fast," he explains.

According to the CTO, the startup's customers will include both businesses and regular individuals. "Stores, from small local shops to large e-commerce businesses, are interested in the fastest delivery possible, as it significantly reduces the number of unclaimed parcels or items due to the emotional aspect that influences purchases," he says.

Sergey mentions that the startup has already reached agreements with local stores in Riga that will use the Yard Delivery service. "Regular individuals will also be able to send parcels using our service. Currently, an ordinary user in Riga doesn't have a convenient alternative to our service," says Sergey. Couriers, according to him, have already lined up and are waiting for the launch of the service in Latvia.

"Our revenue comes from the fees users pay for delivery," says Sergey. The startup allocates a portion to the owners of the parcel lockers, a portion to the couriers, and retains approximately 20% within the company.

By the end of 2025, Yard Delivery plans to launch in seven European countries, aiming for a volume of 9 million parcels per year and a turnover of 54.5 million euros. For 2026, they have projected a turnover of 136 million euros.

The Odessa Journal

The Odessa Journal

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