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£600 - £ 2,300
£140,000 and £170,000 annually after three years of trading
What is DPD and what services does it provide?
This mail and parcel delivery company started life in 1970 as Courier Express. It changed its name to Parceline in 1984 when it was bought by Australian company Mayne Nickless. France’s LaPoste, the second largest postal group in Europe, bought the business 16 years later and soon after it became known as DPD.
In the UK, DPD employs 11,000 people. Its 8,000 vehicles, which operate from 68 locations, service around 6,500 customers a year and deliver over 250 million parcels annually.
Domestically, the company offers a next day and Saturday and Sunday delivery option, an exchange of goods service, a return it delivery function for retailers and integrated warehousing and distribution facilities.
The second of its superhubs in Hinckley, Leicestershire, which cost £150 million to build, is the largest of its kind in Europe and can sort up to 72,000 parcels per hour.
DPD uses cutting edge technology to keep customers informed about their parcel deliveries. Its Predict service provides customers with a one hour delivery window via SMS or email, while Follow My Parcel allows customers to track the progress of their parcel on a real time map and gives them a final 15 minute delivery time slot.
Internationally, DPD can deliver parcels to most countries in mainland Europe. Its Air Classic service delivers to 230 countries globally and its home delivery service was set up to cater specifically for online retailers.
In April 2015, the company was awarded the Queen’s Award for Enterprise in the Innovation category for its Predict service. DPD has been voted top in MoneySavingExpert’s consumer satisfaction survey for parcel delivery companies seven years running.
DPD’s UK sister company, DPD Local, is a franchised network that provides express parcel services for businesses. It has been a full member of the British Franchise Association since 1997.
Does DPD use electric delivery vehicles?
It does and the company’s aim is to become the most responsible and sustainable city centre delivery business and the leader in electric vehicles in the UK.
In October 2018, DPD opened the UK’s first all-electric parcel depot in London and in November 2019 unveiled a purpose build e-cargo bike. In January 2020 it confirmed it was taking delivery of 300 new electric Nissan e-NV200 vans by May 2020 and has recently agreed a deal with MAN Truck & Bus UK for 100 eTGE electric vans.
The contract with MAN means DPD will have the largest 3.5-ton electric van fleet in the UK, taking its electric fleet to 600 vehicles in total. MAN’s eTGE van has been tailored to meet the requirements of inner-city delivery traffic, with a load capacity of 10.7m3 and a range of 65-70 miles. Its 36kW lithium-ion battery can be fully charged in just over five hours or rapid charged to 80 per cent in 45 minutes.
Of the agreement with MAN, DPD CEO Dwain McDonald says: “We’re building the largest all-electric delivery fleet in the UK in double-quick time. The 3.5-ton van is absolutely core to our delivery and collection fleet strategy, so this is a big deal for us and gives us huge efficiencies on the road in terms of route densities.
“We are designing new ways of working to incorporate these vehicles into our operation, so they are transforming our business, as well as contributing to cleaner air and less congestion.”
How does the DPD franchise model work?
DPD has two different franchise options: the owner-driver franchise and the owner-driver franchise lite.
Owner driver franchisees work full time, providing a collection and delivery service usually for five days a week. They can choose the days they work or increase their hours if they wish. The owner-driver franchise lite opportunity allows for flexible working hours and volumes.
All DPD franchisees deliver a range of products on behalf of some of the best-known businesses in the UK, including Next, Vodafone, Marks and Spencer, John Lewis, Boots, Apple and Nike. They are provided with a branded uniform, use the company’s state of the art technology to plan and administer their routes and are paid by DPD every four weeks.
Franchisees are expected to load their own vans and organise their day. Once all deliveries have been made, they return to their local depot for a debrief with the DPD support team.
A franchisee can use their own delivery vehicle and is able to take on extra routes after three months of trading in order to grow their business if desired.
What training and support do DPD franchisees receive?
All franchisees are fully trained in DPD’s operations and technology. Once out on the road, assistance is provided on a day to day basis by the company’s depot support team. Social events for franchisees are also organised on a regular basis.
What’s the earnings potential of a DPD franchise?
DPD says all its franchisees have the potential to turn over between £140,000 and £170,000 annually after three years of trading. These figures are based on franchisees providing a first class collection and delivery service on a consistent basis and adding an additional route in years two and three.
What locations or territories is DPD looking to operate in?
The company has franchise opportunities available throughout the UK.
What are the DPD franchise’s terms of agreement?
DPD provides its owner-driver and owner-driver lite franchisees with five-year contracts.
Where in the UK is the DPD franchise based?
The company’s headquarters are in Smethwick, West Midlands.
Why is DPD a good investment?
This franchise opportunity combines the independence of being your own boss with the chance to operate under the umbrella of a brand that has a good reputation in the parcel delivery business.
Low start-up costs mean the franchise provides a potentially good level of profit in the long term, while DPD’s five-year franchise agreement gives a certain degree of security and a reliable source of income, particularly when you take into account the continuing growth of online shopping in the UK, which is a key driver of growth in the delivery and haulage industry.
The UK has the third largest ecommerce market in the world, according to Statista, and was worth £586 billion in 2017. Statista figures also highlight that by 2021 it is predicted that around 93 per cent of people in the UK who are connected to the internet will be shopping online. If this statistic proves to be correct, it will be the highest penetration rate for online shopping in Europe.
Like all franchisors, DPD provides franchisees with comprehensive training and ongoing support, the latter is particularly important if you have never run your own business before and is crucial during the start up stage.
Once franchisees are up and running, they can maximise their earnings potential through the use of DPD’s route planning technology and earn loyalty rewards once their businesses become established. For example, for every 100,000 stops completed, franchisees earn a financial bonus.
DPD franchisees also say their businesses give them job satisfaction, have helped them stay healthy and active and, in many instances, improved their work-life balance.
While the DPD franchise has all the elements of an excellent franchise, you are advised to conduct in depth research into any opportunity and take expert independent advice before making an investment.
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