Route to Insight #01: The State of Delivery

Mergers, market realignments, and the tech shaping tomorrow’s logistics

Author

Jordon Cornish
May 20, 2025

UK Logistics: Major Mergers and Market Shifts

It’s been a seismic quarter in UK logistics and the consolidation wave is only gaining momentum.

First up, Evri (yep, formerly Hermes) has officially merged with DHL’s UK e-commerce division. Backed by Apollo, Evri now has the infrastructure to handle over 1 billion parcels a year. DHL takes a significant minority stake in the new entity, which is particularly interesting as it opens the door for Evri to enter the UK letter delivery market and a first for the parcel-focused giant.

Meanwhile, InPost is on a tear. The parcel locker specialist acquired Yodel in April, fast-forwarding its UK ambitions by at least five years. But they didn’t stop there. Days later, InPost announced a partnership with ASOS to launch the UK’s first next-day out-of-home (OOH) delivery service, built on a dense network of 12,800 lockers and PUDO points. If lockers weren’t mainstream before, they’re about to be.

And then there’s Royal Mail, which has officially changed hands. Czech billionaire Daniel Křetínský’s EP Group now owns International Distribution Services, Royal Mail’s parent. It’s a £3.6 billion deal, approved by the UK government, with promises to keep the brand, HQ, and employee benefits intact. But behind the formalities, it’s clear: the UK delivery landscape is being redrawn and fast.

U.S. Logistics: Strategic Realignments and Financial Challenges

Over in the U.S., the two postal giants — FedEx and USPS — are facing very different kinds of turbulence.

After a five-year standoff, FedEx is back in business with Amazon. The new agreement centers on heavy and rural deliveries — the type of routes that are logistically tricky and margin-thin. This realignment follows UPS’s decision to pull back from Amazon volume, citing profitability concerns. If Amazon’s the shipper everyone wants and no one wants at the same time, this kind of tug-of-war won’t be the last.

As for USPS, it just posted a $3.3 billion quarterly loss. Some of it comes down to accounting tweaks, but much of it reflects the ongoing slump in first-class and marketing mail. Their 2025 financial plan expects a 5.1% drop in total mail and package volume from 2024. If that holds, the USPS will need more than stamp price hikes to stay solvent.

Globally, we’ve got a mix of innovation and... well, international intrigue.

First, mark your calendar: Parcel+Post Expo 2025 is heading to Amsterdam this October. This year’s agenda is packed — expect new zones focused on AI in logistics, sustainability, and startup showcases. For anyone in delivery, it’s one of the best places to see the future in motion. More on Parcel+Post Expo 2025.

But it’s not all innovation. In Germany, authorities arrested three Ukrainian nationals allegedly working on behalf of Russian intelligence — plotting parcel bomb attacks targeting infrastructure. It’s a chilling reminder that logistics networks can be weaponized, and that hybrid warfare doesn’t just live online. Details on the plot

Market Data & Metrics

Parcel Volumes Stagnate Despite E-Commerce Growth

Despite strong e-commerce activity in Q1 2025, parcel volumes are levelling off. Royal Mail reported flat YoY figures, and USPS saw a 2.1% drop in package deliveries. The plateau is driven by consolidated fulfillment models, B2B softness, and network restructuring.

📈 Stat to Watch: Out-of-home deliveries now make up 18.4% of UK e-commerce drop-offs — up from 12.7% in 2023.

Startups & Investments

  1. WeSupply (US): $18M Series B to expand its delivery notifications, returns, and “where’s my package?” APIs for Shopify and Magento.

  2. Parcelmagic (EU): €7M seed round to build carrier-agnostic tracking + branded comms for small merchants.

The Drop-Off: This Month in Logistics

That’s it for this edition of Route to Insight. The ground beneath the delivery world is shifting - from billion-pound mergers in the UK to AI pilots in parcel depots and cross-border complexities that go far beyond customs declarations.

In the meantime, enjoy our Fika Games (Swedish tradition to pause in the day, enjoy a hot drink and a sweet treat and a our twist a Fika games by Synkka), created to help you relax during the busy conference and travel season.

Until then, Enjoy
Team Synkka

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