Bloq.it: Scaling Out-of-Home Networks for Efficient E-commerce Delivery

This session at DELIVER Europe 2024, presented by Miha Jagodic, CEO and co-founder of Bloq.it, focused on the complexities and challenges of establishing and scaling out-of-home (OOH) delivery networks, particularly in the context of rapid e-commerce growth.

The Rise of Out-of-Home Delivery

The presentation highlighted the increasing popularity of OOH delivery, driven by factors such as:

• E-commerce Growth: The rapid growth of e-commerce necessitates more efficient delivery solutions.
• Cost Reduction: OOH delivery can significantly reduce last-mile delivery costs.
• Environmental Impact: OOH delivery can reduce CO2 emissions compared to traditional home delivery.
• Security: OOH delivery offers a more secure alternative to doorstep deliveries, reducing parcel theft.

The Complexity of Scaling OOH Networks

Jagodic emphasised the complexities involved in scaling OOH networks, noting that it's not simply a matter of installing lockers. Key challenges include:

• Evolving Landscape: The e-commerce landscape is constantly changing, with new trends and consumer preferences emerging.
• Diverse Needs: Different markets and customer segments have varying needs and expectations for OOH delivery.
• Underestimated Costs: The total cost of ownership of an OOH network is often underestimated, particularly in terms of deployment and maintenance.

Key Considerations for Building OOH Networks

Jagodic outlined several key questions that companies should consider when building OOH networks:

• Strategy and ROI: How will the network generate a return on investment?
• Integration: What systems and partners need to be integrated for a seamless user experience?
• Maintenance and Support: How will the network be maintained and supported to ensure optimal performance?
• Total Cost of Ownership: What are the true costs of deploying, operating, and maintaining the network?

Improving Efficiency: Agnosticism and Real-Time Monitoring

Jagodic highlighted two key strategies for improving the efficiency of OOH networks:

• Agnosticism: Being agnostic to both hardware and carriers allows for greater flexibility and adaptability.
• Real-Time Monitoring: Proactive monitoring and predictive maintenance can help optimize network performance and reduce costs.

Location, Location, Location

The presentation emphasised the importance of carefully selecting locker locations, considering factors such as:

• Density: Higher density networks are more convenient for consumers and more efficient for couriers.
• Movement and Accessibility: Placing lockers in high-traffic areas and along common routes improves accessibility.
• Indoor and Outdoor Mix: Combining indoor and outdoor lockers caters to different customer preferences and usage patterns.

The Future of Out-of-Home Delivery

Jagodic concluded by discussing the future of OOH delivery, predicting that:

• OOH will become the dominant delivery model: Home delivery will likely become a premium service.
• Lockers will evolve: Lockers will offer a wider range of services beyond parcel delivery.
• Autonomous lockers will emerge: Off-grid, autonomous lockers will further expand accessibility and convenience.

Key Takeaways

• OOH delivery is a complex but essential solution for e-commerce growth.
• Careful planning and consideration are crucial for building successful OOH networks.
• Flexibility, agnosticism, and real-time monitoring are key for optimizing network efficiency.
• Location and density are critical factors for consumer adoption and satisfaction.
• The future of OOH delivery is bright, with continued innovation and expansion expected.