From now on, you never have to stay home to receive your online order

By Youri van Heumen

Our wallets have been shrinking for years. The diet? A little inflation, but mostly online shopping. Two years ago, we spent an average of about thirty billion euros on online stores. From groceries to clothes, there seemed to be no stopping it. This trend is also clearly visible in Estonia. People keep ordering online, but they also have to go to work. As a result, deliverers cannot put the packages away and are forced to take them back. Marianne and Reimo Raid thought they could make this more sustainable. Their solution comes in the form of a parcel dispenser with an adjustable indoor temperature that individuals can place in front of their homes. Saves a lot of hassle, frustration and CO2. In this episode of Start-up of the day, Marianne Raid, COO of C-box, talks about their product.

How did you come up with the idea? 

“It was my father Reimo who came up with the idea. Who wants to have to wait at home for a parcel, if it comes at all, was the question we asked ourselves. Soon we found answers to that question and the problem came into clearer focus. There had to be a solution for individuals to make this home delivery process more convenient, cheaper and environmentally friendly. So we came up with the idea of developing collection lockers with internal temperature control, so that people no longer have to stay at home for groceries or other packages.”

What exactly did you develop? 

“We have given the traditional parcel vending machine a new, innovative look. Our doorstep parcel lockers include an option to set the inside temperature according to your needs. Moreover, anyone can use these lockers; from couriers, to service providers, as well as by a friend, neighbour or a family member. All you have to do is forward the five-digit code you were given when reserving a locker. The safes can also function as a heating oven if you have ordered dinner that needs to stay warm, or a fridge if you have ordered products from the supermarket that need to stay chilled.”

Which companies or individuals buy your product?

“There are a lot of parties who have an interest in our product. Think, for instance, of the delivery company, housing association and the end user: the resident. The resident is also the one who pays for the locker. The purchase of the C-Box is mostly done by the housing corporation that wants to put it in front of a flat, but it is also for sale to individuals. At the moment, we mainly focus on the Estonian online shopper. Right now, we are also in intensive contact with supermarket chains and apartment complex owners who are interested in our product. It makes sense for them to help pay, because they themselves also benefit. Especially in the case of the supermarket chains.”

What does the process from ordering to picking up look like? 

“Via your mobile phone, you can reserve a locker for an average of two euros for an entire day. While making the reservation, it is also possible to immediately set the desired temperature. Later, the app sends an e-mail containing the one-time C code. This code is the only way to open the safe. So the delivery driver also needs this code to open the locker. One of the options is that you type the C code next to the delivery address or in the ‘message to delivery person’ field. When the parcel has been delivered, you will be notified by e-mail or text message. In this contact, you will receive a new code to retrieve the items from the locker. This is done this way to minimise the risk of fraud.”

What sets you apart from the competition?

“Of course we have competition. There are already plenty of collection points in Europe, especially in Estonia. But there are no companies doing the same as us. Every delivery service has its own lockers scattered around the city, but these are mostly placed in shopping centres. Ours are precisely at flat blocks. The internal temperature controller is another aspect that sets us apart from competitors. In fact, our pick-up points are the only suitable pick-up points for food or medicine when outside temperatures are extremely high or low. Our distinctiveness also lies in the fact that the C-Box is universal. Anyone can use it, and therefore not just delivery people from a specific delivery service.”

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What challenges did you have to overcome? 

“One of the challenges was finding suitable locations for the lockers. Our strategy is not entirely demand-driven, as we also had to approach enough parties ourselves to sell our product to them. The lockers obviously need electricity and we focus on apartment complexes in neighbourhoods where the average income is higher. That is quite a specific market and that made it difficult to determine the perfect location. 

Moreover, there are already quite a lot of collection points established in Estonia. That makes it difficult to convince people why they should want our product. Forcing change is difficult and it takes time, but that’s why we are also going to focus on countries elsewhere where we can convince even more markets about our product.”

What are goals for the future?

“We want to expand into Western Europe. Britain is a country we are doing a lot of research on now. But Germany, the Netherlands and France are also countries that have potential. These are countries in which e-commerce has been booming in recent years. We think we can enter those markets the fastest. In the end, it’s all about the location. If that is good, the rest will follow naturally.”

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