InPost Challenges Royal Mail With Cut Price Parcel Service Through UK Locker Network

Polish parcel locker specialist InPost is set to disrupt the UK delivery market with an aggressive pricing strategy that directly challenges Royal Mail’s dominance. The company’s new customer-to-customer delivery service, launching this week, will offer rates starting at £1.99, significantly undercutting Royal Mail’s entry price of £3.25.

The company’s rapid expansion has seen it establish 9,200 locker locations across the UK, with 3,000 installations completed in the past year alone. InPost’s growth strategy capitalises on mounting consumer concerns about parcel theft from doorsteps, a phenomenon known as “porch piracy”.

The new “Send” service marks a strategic pivot for InPost, which previously only serviced deliveries from online retailers and second-hand marketplaces like Vinted. The service will operate through the InPost app, enabling users to send parcels weighing up to 15kg without traditional labelling requirements. Customers can deposit parcels at locker banks or convenience stores, with delivery options including locker-to-locker transfers or direct home delivery.

InPost’s ambitious expansion plans include a £600 million investment in UK operations by 2029. The company’s market position was strengthened by its acquisition of Menzies Distribution in October 2024, providing crucial last-mile delivery capabilities. Industry sources suggest the company is also exploring a potential acquisition of struggling delivery firm Yodel.

Royal Mail’s response includes an aggressive expansion of its own delivery network, with plans to operate more than 21,000 drop-off locations this year. The state of competition between these two delivery giants signals a significant shift in the UK’s parcel delivery landscape, with consumers standing to benefit from increased choice and competitive pricing.

Neil Kuschel, chief executive of InPost UK, emphasised the strategic importance of the launch, stating that “Send marks a pivotal moment for both InPost and the wider UK postal market, bringing the parcel experience up to date with consumers’ lifestyles.”