Podcast Ep 318: DPD Ireland’s innovation chief Colin Kennedy reveals how parcel lockers, EVs, and sustainability goals are reshaping the future of delivery and e-commerce.
It emerged recently that DPD Ireland is launching a multimillion-euro investment in parcel lockers and pickup points, aiming to capitalise on a fundamental shift in how Europeans collect their online purchases.
The delivery company, celebrating its 40th anniversary in Ireland, will roll out nearly 1,000 locations across the country by 2027 under its new ‘PickUp’ service, mixing automated red lockers with partnerships at local shops and petrol stations.
“My daughter can buy and sell into France as easily as she can buy and sell into Tralee”
“You’ll start seeing this network and these lockers from next month,” said Colin Kennedy, chief innovation officer at DPD Ireland and managing director of PickUp. The first installations are scheduled for April, with a full network operational by midsummer.
The move reflects broader European trends where consumers increasingly prefer collecting parcels at convenient locations rather than waiting at home for deliveries. In Poland, 75% of all parcel deliveries now go to out-of-home locations, while the European average has reached 40%.
Convenience driving adoption
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Kennedy attributes the shift to consumer convenience, particularly around returns. “About 50% of items purchased online go back again,” he explained. “If that isn’t easy for consumers, it does actually put them off from buying.”
The 24/7 accessibility addresses a key friction point in e-commerce. Kennedy described the ideal placement as “slipper distance” – close enough for customers to practically collect parcels in their nightwear.
DPD Ireland reported record volumes in 2025, delivering 45 million parcels through its 37 depots nationwide with close to 2,000 delivery staff. The company has nearly doubled in size over the past six years, driven by e-commerce growth accelerated during the pandemic.
Sustainability targets drive innovation
Alongside the locker expansion, DPD has pursued aggressive sustainability targets. The company now delivers 30% of parcels – approximately 15 million annually – using low-emission vehicles, with plans to reach 90% electric delivery by 2030.
“We’ve doubled in size in six years in real terms, and we’ve halved our emissions – a 45% emission reduction in the same period,” Kennedy said.
The company operates over 450 electric vehicles and has adopted hydrogenated vegetable oil (HVO) for its larger trucks, achieving 90% emission reductions on those vehicles. However, Kennedy highlighted infrastructure challenges, particularly securing sufficient electrical capacity at depots to charge fleets overnight.
The success of out-of-home delivery depends heavily on seamless technology integration. Major retailers are building locker networks into their checkout processes, while platforms like Vinted already enable peer-to-peer transactions through pickup points.
“My daughter can buy and sell into France as easily as she can buy and sell into Tralee,” Kennedy noted, highlighting how global e-commerce platforms are expanding cross-border trade.
The company is also exploring drone deliveries through partnerships with startups, building on parent company La Poste’s existing drone operations in southern France. However, Kennedy cautioned that current parcel volumes and weights don’t always suit drone delivery.
While Ireland lags behind other European markets in same-day delivery services, Kennedy sees significant growth potential. “You go to the States now and 30 minutes is their target for getting things from order to your hand,” he said, noting that similar services are being planned for Ireland.
The locker network will accommodate various parcel sizes through modular designs, ranging from 40-locker units to installations with over 100 compartments in high-traffic locations across Europe.
DPD Ireland, owned by French postal service La Poste, operates across the island of Ireland and has appeared on best employer lists while maintaining its sustainability credentials in an industry under pressure to reduce environmental impact.
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Listen to the ThinkBusiness Podcast for business insights and inspiration. Latest episodes are here. You can also listen to the Podcast on:
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