InPost EU - Our strategy

Poland

Building on our position, launching new services, and capitalising on synergies

International

Successful integration of Mondial Relay with UK acceleration and a priority plan for other markets

New services

Developing new services to drive user stickiness and explore adjacencies

ESG

Embedding and highlighting ESG throughout our operations

The Group’s strategy is to accelerate the ‘flywheel’ effect to drive sustainable long-term growth.

The Group will seek to achieve this through a combination of:

1. Optimising its existing operations and services,
2. Increasing the population coverage with new APM roll outs,
3. Driving the adoption of its offering to support a sustainable future,
4. Expanding internationally through a combination of organic investments and acquisitions and
5. Introducing additional products and establishing a foothold in the e-grocery market.

In addition, the Group aims to ramp up its fulfilment offering to further enhance its speed of delivery.

Leveraging Data Science to optimise business processes

The Group continues to constantly optimise its daily activities through cooperation with an internal Data Science Hub. This year we further expanded monitoring and forecasting capacities enabling us to optimise operations and enhance planning processes. We also use our data to further personalise content, and identify opportunities for cross-sell and up-sell for both existing and new services. We constantly work to improve the parcel’s dwell time in an APM and service quality. This is in line with our approach of setting the bar higher and higher.

The Group made significant progress in 2023 in terms of unifying reporting and implementing Business Intelligence across countries; the Group aims to further expand the usage of data and further develop new solutions not only for Poland and local markets but for the whole Group. We are working on combining internal sources with external data providers and using best in-class methods to drive the value of our operations.

Building on our strong position – increasing the serviceable volume and population covered with new ‘whitespace APM’s’ roll out

In 2023 we further improved the population coverage in Poland. Scale and density of the APM network are critical drivers for consumer convenience and operating efficiency. APM network expansion ensures that the Group’s services become increasingly more attractive to end consumers, which in turn encourages merchants to offer and communicate InPost delivery methods. The Group has a demonstrated track record of successful APM deployment. As of 31 December 2023, 61% of the Polish population was able to reach an APM location in seven minutes from their home (walking time). As of 31 December 2023, we had more than 3.3 million lockers. In cities we work with municipalities in the InPost Green City program and put more focus on indoor locations in order to both provide greater convenience and maximise space usage. The roll-out of new APMs is supported by strong data analytics and aimed at optimising the customer experience, which has driven growth in the past; the Group expects that it will continue to do so in the future.

The Group also focuses on increasing the capacity of its already deployed APM network. As extensions are a cost-and-capex-effective way to grow capacity without acquiring new locations, InPost increased the average number of lockers per APM from 139 at the end of 2020 to 149 as of 31 December 2023. Apart from successfully developing multi-parcel delivery, multiple refills and several data-driven initiatives to increase end-user engagement and foster quick pick-up habits, the research and development (‘R&D’) department creates, in collaboration with our partners, new solutions, such as robotised indoor machines that aim to increase the volume handled on a limited indoor space.

In terms of international markets, we utilise our proven know-how, adjusted to the local market conditions, to successfully roll out the APM network. Within less than six months from the Mondial Relay acquisition we managed to deploy over 300 machines in France, as at the end of 2021.

In 2022 and 2023, we continued deploying APMs across Mondial Relay markets, ending 2023 with 5,317 machines.

Offering new products and new adjacencies

Meanwhile, we will further capitalise on opportunities to enhance the e-commerce customer experience and attract new users with the simplicity and convenience of our delivery service. To drive this, we will continue to develop the services and products we offer across each of our markets. To improve consumer experience with its delivery service, the Group is constantly developing its mobile app. As of 31 December 2023, InPost Mobile had over 11 million users in Poland.

InPost will continue to develop new services, entering new segments to become an end-to-end partner for e-commerce and to provide the best user experience for end-consumers across all markets. New products can be expected within the core delivery services, as well as new areas such as shopping financing services and eco-solutions.

InPost Fresh

InPost is extending its role in the Polish e-Commerce market, with an additional focus on e-FMCG.

In 2021 the e-FMCG market size in Poland was around PLN 5b in Poland (Source: Company, Market reports) reaching around 2% penetration. Due to COVID-19, 31% of e-Grocery clients increased their spend, and 50% of those new to e-Grocery claim they would continue to shop this way. The market has since seen double-digit growth, which is expected to continue.

InPost Fresh is an online B2C shopping platform dedicated to FMCG products. Since launch, it has successfully developed a strong proposition for shoppers, built around an offering of over 200 thousand products, attractive prices, a convenient platform and trusted delivery by InPost throughout the country. The dedicated team of InPost Fresh continues to work on further scaling the platform - both in terms of functionality, as well as coverage.

InPost Pay

The InPost Pay service is an innovation on the market - a new way to make online shopping fast and convenient. It is a complete technological solution, payment and delivery in one click. By pairing with a browser, the shopper can conveniently finalize purchases without having to fill out forms and enter their data. The InPost Mobile app remembers the buyer's data, their favourite form of delivery and their favourite form of payment. The customer can also track all orders from different stores in one app. InPost Pay gives a consistent shopping experience across all e-commerce sites.

InPost fulfilment

The addressable fulfilment market is expected to reach PLN 4.0b in 2026. Market growth is due to both increasing B2C parcel volumes, as well as a growing willingness to outsource fulfilment. The addressable fulfilment market is dominated by merchants with >1k parcels per month, where fashion, electronics, and beauty are particularly important segments. InPost is redefining its fulfilment strategy to meet the needs of the market.

Based on our research, only 34% of merchants surveyed know what third-party fulfilment service is, and educating the market is key to our success. From this group around 6% of merchants already outsource fulfilment, but another 28% would consider working with partners that will enable, support and advise on the growth of their businesses, beyond simple fulfilment outsourcing, and we want to be such a partner – an end-to-end e-commerce partner.

In 2022 we continued to increase our share of checkout (the total volume of the Polish Group’s merchants using its delivery services, divided by the volume for which they used its fulfilment services.

International Expansion

Beyond Poland, we operate in eight international markets: France, the UK, Italy, Spain, Portugal, Belgium, the Netherlands, and Luxembourg.

Our strong positioning for international expansion is driven by both internal capabilities and external market conditions.

Key company strengths include:
- A resilient operating model in Poland with sustainable profitability and robust cash generation
- High-quality, standardized consumer service (superior InPost user experience compared to other solutions)
- A proven track record of success in Poland

Market factors contributing to our advantage:
- First-mover advantage
- Significant cross-border growth potential
- ESG benefits for merchants, customers, and regulators
- Inflationary cost pressures impacting retailers

Our ultimate goal is to elevate each market to a similar level of maturity and operational effectiveness as Poland, while carefully adapting to local market dynamics.

ESG

ESG will also play a fundamental role in our development. We have created a new ESG strategy which is being embedded across the Group at every level and is a key component of our business model. It incorporates trends in e-commerce, the risks and opportunities identified for the company, and areas where a more structured approach is required from stakeholders. The strategy links to the United Nations Sustainable Goals (SDGs) to create a robust, comprehensive foundation on which to apply the best practices in sustainable business practices.

We precisely understand our role in the face of the climate crisis, and the development of the InPost Group Decarbonisation Strategy in accordance with the Paris Agreement and the approval of reduction targets by the Science Based Targets initiative - are a natural consequence of the ESG Strategy.