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Couriers – Will the bubble continue?

 

Couriers have seen a significant increase in deliveries as a result of people switching to online shopping because of the COVID-19 pandemic. During the first quarter of 2020, online orders were up 50% on average in Europe. The lockdown and subsequent closures of shops meant that people turned to online shopping as well as ordering takeaways due to restaurants being closed on the weekends.

The most important factors in the courier industry remains reliability and speed, during the COVID-19 pandemic this was tested to the limit. In a distanced economy, the courier industry were busier than ever, for example, the retail giant Amazon started to experience delays with their one-day delivery service due to a backlog of orders. This has led to more and more courier workers being employed and demanding insurance which we have been able to provide via our website and telephone services.

While there has been an increase in demand for residential deliveries, there has been a decrease in commercial deliveries as schools and workplaces are closed. Since March 2020, pupils have been in and out of their schools dependent on the government guidelines and office workers have been advised not to travel to work if it’s not necessary. Therefore, school and office supplies have been in low demand affecting couriers and their need for insurance.

Online food apps, such as Deliveroo, have experienced the largest increase in demand since the COVID-19 pandemic started in March 2020. Deliveroo uses a network of 80,000 freelance couriers to deliver food from over 100,000 restaurants to people’s homes and offices. At Clegg Gifford, we must ensure we are meeting our client’s demands and needs therefore we have accommodated the increase in courier work and developed our level of cover to guarantee we are competitive in the market.

As restrictions begin to lift in the UK and Ireland, more people are venturing out to the shops and restaurants to “make up for lost time”. People have also been encouraged to go back to their offices and schools have been re-opened, therefore, the demand for courier work has stabilised for the first time since March 2020. Outbound parcels to customers only saw a 2% rise in 2021 compared with 10% the previous year when the nation was ordered to stay inside.

Since the start of the pandemic, we have dealt with a huge array of couriers all demanding insurance to cover themselves in the event of an accident. Subsequently, we have adapted and improved the product we sell to help tailor it to your needs. Our experienced team of courier specialists work with the leading UK insurers and know where to find your cover at an appropriate price. We also work quickly and professionally so you can concentrate on running your courier business.

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