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Why is NR investing in Doddle

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lejog

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The business inside article is staggering. The first year they lost £11m on sales of £16k. The second year wasn't much better. At the trends they're going they'd need probably hundreds of millions of pounds to even break even, assuming they ever got there.

Tbh this always happens when you get crazy investment money with no sales. It's too easy to burn cash. It's ridiculous that NR burnt £30m+ on this terribly ran business when there are so many uses for that money rather than playing Peter Jones.

How do you get the £30m figure? Network Rail sold their holdings in Doodle for an unknown sum in Autumn 2015. (The Times)

Edit: Also from the Business Insider article -

Dorfman's cash is keeping the company afloat, and since the initial £24 million Network Rail/Dorfman investment, he has invested "kind of similar to the same again," Robinson said, which would put the total invested at about £48 million.

Network Rail's known investment was 44% of £24m, or £10.5m.
 
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mark-h

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Network Rail's known investment was 44% of £24m, or £10.5m.

Was NR's investment in cash or "in kind" (rent etc.)?

I find the Doddle business model a bit puzzling. A local Morrisons has recently opened a Doddle (which also contains [runs?] an Amazon locker. It needs a member of staff to man it all day, had they made the Doddle part of the customer service desk or dry cleaners or tobacco counter then they could have saved the cost of employing somebody.

All the other pickup/dropoff companies rely on being part of an existing shop without requiring extra staff.
 

mrmartin

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Was NR's investment in cash or "in kind" (rent etc.)?

I find the Doddle business model a bit puzzling. A local Morrisons has recently opened a Doddle (which also contains [runs?] an Amazon locker. It needs a member of staff to man it all day, had they made the Doddle part of the customer service desk or dry cleaners or tobacco counter then they could have saved the cost of employing somebody.

All the other pickup/dropoff companies rely on being part of an existing shop without requiring extra staff.

I assume cash as they paid a bunch of rent in the accounts in the BI article, and when they started they were pretty much exclusivity in NR stations.

It was a dreadful model, i used it a few times and it could not be more inefficient. As you say, not automated unlike Amazon lockers. The biggest laugh i had was trying to send a parcel from there, cost about £4 but took two staff members the best part of 15 minutes to sort it out. The post office did it in about 1 minute.
 

Bletchleyite

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Personally i just use same day evening delivery.

I'm OK with two hour slots offered by the likes of DPD, even better if they have proper tracking so within that slot it can be narrowed down so you don't jump in the shower or go on the loo at the wrong time. But even blocking out an entire evening is inconvenient.

I use an Amazon locker (there's one at a local petrol station) and Post Office collection in near enough equal measure (depending on if I think I'm likely to want to collect daytime or evening - the post office only offers daytime collection, but the locker is a bit further away) - only if I think it'll fit the letterbox[1] do I order to my house, even if I think I'm probably going to be in. I could easily do a Safe Place, but Amazon will only accept a selection from a short list and others only a very short line of text - I need about 80 characters to properly describe the one I would use.

[1] Amazon could do with listing products that will fit in a standard letterbox sized package with measurements to make that choice easier.
 
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DarloRich

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If you are Amazon Prime you can in certain locations (including MK) obtain same day delivery. It is always between 6-10 so it is perfect for me

No need for any third party locations or handling by randoms.
 

Bletchleyite

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If you are Amazon Prime you can in certain locations (including MK) obtain same day delivery. It is always between 6-10 so it is perfect for me

No need for any third party locations or handling by randoms.

As I explained, even if I am in (which I rarely am in evenings) it is inconvenient not to be able to pop out briefly to the shop, the loo, have a shower/bath etc for fear of them knocking. They are so time-pressured (due to being seriously underpaid per drop such that they can barely make minimum wage) that they won't wait around.

If collection wasn't such a convenient option I think I'd have built a drop box of some sort by now, though.

FWIW it's only available (in MK) on products that are in the Ridgmont warehouse - not everything is.
 
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Marklund

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If you are Amazon Prime you can in certain locations (including MK) obtain same day delivery. It is always between 6-10 so it is perfect for me

No need for any third party locations or handling by randoms.

Glad it works for you, but not everywhere has same day delivery, or with shifts makes no difference for delivery.
Lockers are the way forward, not expensive stores.
 

Bletchleyite

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Just occurred to me why you won't see Amazon lockers at stations...it would be very easy for someone to order something large, then go to collect it, remove it, insert nefarious object of choice, close it, leave station, push button, watch unpleasant situation unfold.

Unless left luggage lockers make a return, these won't be in stations any time soon.
 

DarloRich

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Glad it works for you, but not everywhere has same day delivery, or with shifts makes no difference for delivery.
Lockers are the way forward, not expensive stores.

I agree - luckily i don't need to faff about with such things but imagine they are really useful if you don't have flexibility.

.

FWIW it's only available (in MK) on products that are in the Ridgmont warehouse - not everything is.

It is usually books I am after so I tend to only buy the ones that are! You can get same day deliveries in Edinburgh, Glasgow, Leeds, Manchester, Liverpool, Birmingham, MK, London & Bristol as long as the item is in the local distribution centre.
 
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Mojo

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Unless left luggage lockers make a return, these won't be in stations any time soon.
Amazon lockers have been on Underground stations since June 2014; I collected a parcel at Blackhorse Road just last week. They are normally located in station car parks however.
 

Bletchleyite

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Amazon lockers have been on Underground stations since June 2014; I collected a parcel at Blackhorse Road just last week. They are normally located in station car parks however.

Yeah, the car park is probably pretty low risk (and the risk of a much larger nefarious item in a car boot is higher anyway).

Actually, that does suggest - reinstate luggage lockers but put them in the car park!
 

samuelmorris

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I found the Doddle service extremely useful, and far superior to the MyByBox system it effectively took over from. Both services, however, suffered a similar fate in my view - management incompetence. At least though with Doddle you were only exposed to that when you tried sending a parcel, or if you used the Chancery Lane branch.

The business model sadly isn't sustainable, it really needs either a government subsidy or a tie-in with something like the post office. I will definitely keep looking for a suitable replacement service on the assumption that the fairly foregone conclusion of them going fully bankrupt materialises before long.
 

Trainfan344

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There was a big queue for the Doddle Kiosk at Liverpool Street today about quarter to 7 this evening.
 

Wombat

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I found the Doddle service extremely useful

Me too; it's the obvious solution to the home delivery problem. But only if you can afford to run at a loss indefinitely, apparently!

It's a bummer, because my local Doddle was fantastically useful. It was also suffering from very low traffic, so I'm not surprised it closed.
 

Shrimper

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Same, the one at Piccadilly was extremely useful (Amazon/other couriers can't access my post box, so if I'm not in my delivery fails; and there are no convenient lockers nearby) BUT always seemed massively overstaffed for the footfall it received, often 3-4 members of staff in with no customers.

Hopefully an alternative will appear before too long
 

redbutton

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Are they really going out of business? I've had a look at their website and it appears they're shifting their model to an in-store counter inside Morrisons and Ryman shops rather than stand-alone premises.

It seems like a good way to cut costs to be honest, though a bit less convenient if they're not on station premises anymore.
 
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The Doddle shop at Birmingham New Street has gone, with a sign directing customers to the counter inside Bullring Shopping Centre (literally just over the road) which is still open.
 

Monty

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I always found it a curious business, always found their store at Basingstoke station completely devoid of customers and full of staff doing very little.
 

route101

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I use Doddle . The 2 City Centre stores have closed , i used the store Under Glasgow Central and when ive been in it there has been other customers. Now the two remaining doddle stores are in Morrisons . I picked something up at the Morrisons doddle and the person manning it had a tally of customers that day it was 6 and it was 7pm .
 

samuelmorris

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At its peak I used Doddle maybe 5 or 6 times a month. At £5 a month that's £1 per delivery, even at full price it was £2.50 max. 6 deliveries a day would pay one member of staff minimum wage for 2 hours. It's not difficult to see why they are going bust sadly. The locker system is far better since the only staffing requirement is occasional maintenance but I've yet to see any locker system that can be used as a general post address with any delivery company, without adding an extra day to the delivery time (as per MyByBox).

Courier delivery is just as vital as ever and the system still sucks, so services like these are in my view very important. I'm hopeful that Doddle or a service like it will prevail in London (honestly one store would do rather than the dozen or so they had) but elsewhere I'm not sure. Like I say, this is the sort of service that I think really only works if it's subsidised.
 

TheEdge

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This doesn't surprise me, I don't think I saw a single person ever use the one in Norwich station.
 

mrmartin

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They seem to have pulled out of everywhere apart from Morrisons now. Losses to date exceed £100m, so not a great success.
 
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