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Hermes Europe

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For the French luxury brand, see Hermès.

Hermes Europe GmbH
Company typePrivate
IndustryCourier
Founded1972; 52 years ago (1972) in West Germany
Headquarters
Hamburg
,
Germany
Area served
United Kingdom, Italy, Austria, Germany, China, Russia
Key people
Carole Walker (CEO)
ProductsParcel delivery
ParentOtto GmbH
Websitewww.hermesworld.com

Hermes Europe GmbH is a German delivery company headquartered in Hamburg, owned by the retail company Otto GmbH.[1]

History

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Volkswagen Crafter delivery van for Hermes in Germany

The company was founded in 1972 in Germany, opening 20 depots in its first year.[2] In 1989, after the fall of the Berlin Wall, it began offering deliveries to East Germany.[3]

It expanded to France in 1997, the United Kingdom in 2000, Austria in 2007, Italy in 2009 and Russia in 2010.[citation needed]

EVRi-Hermes UK

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History

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In November 2020 Advent International announced it would partner with the current management team to acquire a 75% stake in Hermes UK.[4] Otto Group would continue to own 25% of the company. Advent would also acquire a 25% stake in Hermes Germany, which includes other Hermes Germany Group companies, including BorderGuru and a share in the ParcelLock joint venture. The partnership would not affect Hermes’ activities in Russia and Austria, the holding company Hermes Europe or the companies not involved in parcel delivery, namely Hermes Fulfilment, Hermes Einrichtungs Service, Girard Agediss, Hansecontrol and Otto International.

In March 2022, following allegations of poor customer service and parcel mishandling, Hermes UK announced it would rebrand as EVRi.[5][6]

Criticism

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The company was named as the second worst parcel delivery service in the United Kingdom (after Yodel) by users of moneysavingexpert.com in January 2014, with 30% of customers rating their experience as "bad".[7]

Mat Heywood (Guardian reporter) produced a video report on 18 July 2016 that described courier work, and concluded “it’s hard work, definitely skilled work”. The route took him well over twice the time the company suggested it takes.[8]

In September 2016 the government asked HM Revenue and Customs to consider launching an investigation into Hermes, after workers alleged they received pay equivalent to lower than the current minimum wage in the United Kingdom.[9] During this investigation a whistleblower claimed that Hermes coerced managers into misleading an HMRC investigation.[10]

In June 2017 the GMB union claimed “Hermes dodges its responsibility to check proper insurance cover is in place by asking them (couriers) to acknowledge they "understand that motor insurance is required to deliver and collect parcels and/or catalogues on behalf of Hermes.” In response Hermes “categorically refutes” allegations made by the GMB that it is putting their drivers and the public, at serious avoidable risk by cutting corners in the interests of profit.[11]

In September 2017 Frank Field, Labour MP and chair of the Commons work and pensions select committee, said he had written to Mike Ashley, the billionaire Sports Direct founder, to demand answers following concerns raised by a whistleblower at Hermes regarding claims the company was under-paying couriers by mislabeling items as lightweight packets to avoid paying the fair delivery cost. Hermes said: “We categorically deny these allegations and are happy to answer any questions raised. We have stringent processes in place to check that parcels are not mislabelled and placed in the wrong weight category. On the rare occasion of an individual label being incorrect, couriers can immediately call our dedicated courier support team, to notify us and change their payment with no questions asked This applies to all our clients and ensures that both Hermes and our couriers receive the correct payment. We have no issues with Sports Direct who remain a valued customer."[12]

In June 2018 an employment tribunal in Leeds found that a group of 65 couriers, supported by the GMB union through lawyers Leigh Day, were workers entitled to employment rights, including minimum wage and holiday pay, rather than self-employed as Hermes asserted. The GMB union stated the ruling was likely to affect 14,500 Hermes couriers. Hermes considered an appeal, but this did not progress.[needs update][13][14]

During the coronavirus pandemic, Hermes said it would pay its drivers in the United Kingdom who needed to self-isolate only £20 daily, and payment would be made only to those who normally earned less than £90 daily. As a result, almost half its workers would receive nothing while payments to the rest would be capped at £280 per fortnight.[15]

In an April 2020 episode of Channel 4's consumer show Joe Lycett's Got Your Back, it was shown that Hermes was sending parcels they claimed were undeliverable to an auction house. Host Joe Lycett contested the undeliverability of the items, finding many goods auctioned off had legible names, addresses and tracking numbers.[16][17]

There have been reports that EVRi damage and mishandle parcels before they reach the 'final-mile' courier. In a case in Plymouth EVRi employees were filmed throwing parcels. EVRi released a statement apologising.[18]

December 2022 witnessed a sharp increase in customer complaints against EVRi, only a few months after their rebranding. North Durham MP Kevan Jones said he was aware of concerns after workers claimed thousands of parcels would not be delivered in time for Christmas. The GMB union also said it was aware of health and safety issues at depots in County Durham.[19] On 16 April 2024 a fire broke out at an EVRi warehouse in Avonmouth, with billowing smoke reported from several areas. An Evri spokesman stated that an investigation will be carried out to determine the cause.[20]

Still in 2023, the company was heavily criticized. Contacting EVRi was reportedly challenging, with many individuals experiencing difficulties in reaching them, particularly for issues regarding lost parcels.[21] Moreover, news reports have advised individuals expecting deliveries from EVRi to lock their doors, as there have been allegations of delivery drivers entering homes without permission to drop off parcels.[22] According to many more sources, EVRi drivers scam the customers by scanning the parcels as received but later taking them with themselves.[23]

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In May 2023, EVRi was credited by Amazon for its performance in delivering Prime parcels. According to Amazon's assessment, during a six-week trial period, EVRi consistently met standards set for parcel deliveries. The trial, according to limited sources, revealed a success rate of 97% for delivering parcels that were collected before 4:30 PM, guaranteeing their arrival anywhere the next day.[24]

On 1 March 2024 the Post Office wrote to Liam Byrne MP, Business and Trade Committee Chair, in connection with the Horizon issue, stating "Post Office recently launched over-the-counter sales with carriers other than Royal Mail for the first time in our 360-year history, allowing customers to choose to send also parcels with DPD and EVRi within branches now and, crucially, driving new footfall and revenue for Postmasters."[25]

Pension Scheme for self-employed couriers, and guaranteed pay rates

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EVRi announced that it would auto-enrol all of its 20,000 ‘self-employed plus (SE+)' workers into a pension by the end of 2022. EVRi CEO, Martijn de Lange, stated: “When we first announced our SE+ model in 2019 we committed to continuing to develop our support for our self-employed couriers and we are proud to have been true to that and be leading the industry once again. Our couriers receive guaranteed pay rates, paid holiday and now a pension but have also been able to retain the flexibility that so many treasure, fitting in their deliveries alongside their other, often family, commitments.” [26]

Parliamentary History/Courier Remuneration/Claims of Exploitation

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Andy McDonald MP raised concerns to Darren Jones MP, Business, Energy and Industrial Strategy Committee Chair, via a letter dated 28 May 2021, stating "It is an outrage that working people are receiving no recompense for hours of their labour, or seeing enforced reductions to their pay with the threat of redundancy. Furthermore, the number of hours that Hermes drivers are made to work to make ends meet is not only a moral outrage but a very dangerous safety concern for the wider public as well as the drivers themselves." The letter from Mr McDonald contained several courier testimonies.[27]

In June 2021 Andy McDonald MP raised allegations of exploitative working practices with regard to 'free sorting'. The Guardian had already reported that some couriers felt they had to work for free, sorting parcels so they could start their rounds on time. One manager told Mr McDonald that the company had refused to hire enough sorters at some of its Delivery Units, meaning that couriers had to sort out packages.[28]

Mick Rix of the GMB union stated “We’re trying to get to the bottom of why this is happening and why there seems to be this expectancy. Because Hermes is a multimillion-pound operation at the end of the day and it can afford to put these things in place.” [29]

In a case at Dagenham Steve Garelick, GMB London Region Organiser said "EVRi management has allowed the practice of unpaid sorting of parcels and it has become clear any challenge to this practice is handled completely inappropriately. EVRi changed its trading name to help shake off a reputation that included bad employment practices. I have made requests at senior management level and with regional managers that have for too long been ignored, it’s time to combat the practice of unpaid tasks and time spent working. EVRi must realise that GMB will see this matter through to a tribunal, despite there being a recognition agreement in place. The master and servant regime must end."[30]

A letter from Hermes dated 1 June 2021 to Darren Jones MP, Business, Energy and Industrial Strategy Committee Chair, stated that "From the start of 2017 a courier’s average rate per hour (based on a rolling 12-month period), using the methodology agreed with the GMB Union, has increased by 14.41% and is currently £15.61 per hour".[31]

Carolyn Harris MP questioned whether EVRi should be investigated over its “poor customer service”. Early in 2023 she asked of the PM, Rishi Sunak “Does the Prime Minister believe that over 40,000 interactions by either social media, email or letter regarding the poor customer service and working conditions at the delivery company EVRi warrants an investigation by the relevant Government department?”[32]

In 2023 a 13% pay increase was reported as an agreement between the GMB union and EVRi that will increase the rates paid to GMB members who provide courier services. In addition, GMB negotiated the reinstatement of the option for ‘Lifestyle’ category couriers to switch to ‘Self-employed Plus’ (SE+), giving couriers who switch the same benefits of protection and paid holidays enjoyed by SE+ couriers.[33]

Edge Finco PLC (EVRi) September 2024

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On 29 January 2024 Reuters reported that private equity group Advent International is considering options, including a potential sale of EVRi, citing two sources familiar with the matter.[34] On 25 July 2024 Apollo (NYSE: APO) announced that Apollo-managed funds (the “Apollo Funds”) have entered into a definitive agreement with Advent International to acquire EVRi.[35]

On 23 September 2024, following its acquisition by financial sponsor Apollo Global Management, S & P Global announced that UK-based parcel delivery company Edge Finco PLC (EVRi) has been assigned a 'B+' Rating; Outlook Stable.[36]

References

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  1. ^ "Hermes Group". Hermes Group. 2014. Retrieved 26 December 2014.
  2. ^ Hermes. "Hermes in the 70s | Hermes". www.hermesworld.com. Retrieved 24 March 2024.
  3. ^ Hermes. "Hermes in the 80s | Hermes". www.hermesworld.com. Retrieved 24 March 2024.
  4. ^ "Hermes UK growth supported by investment from Advent International". Advent International. 10 August 2020. Archived from the original on 8 April 2022. Retrieved 11 April 2022.
  5. ^ Hunt, Simon (11 March 2022). "Hermes changes its name to Evri after parcel mishandling allegations". www.standard.co.uk. Archived from the original on 12 March 2022. Retrieved 11 March 2022.
  6. ^ "Evri - The New Hermes | Cheap Parcel Delivery & Courier Service". www.evri.com. Archived from the original on 4 April 2022. Retrieved 21 March 2022.
  7. ^ King, Mark (10 January 2014). "Yodel and Hermes named UK's worst parcel delivery firms". Moneywise. Archived from the original on 12 December 2016. Retrieved 10 June 2014.
  8. ^ Heywood, Mat; Topham, Laurence; Khalili, Mustafa; Booth, Robert (18 July 2016). "Mission impossible? The truth about being an online delivery driver – video". The Guardian.
  9. ^ Booth, Robert (11 September 2016). "Hermes may face HMRC investigation into allegations of low pay". The Guardian. Archived from the original on 14 December 2016. Retrieved 14 December 2016 – via www.theguardian.com.
  10. ^ Booth, Robert (4 May 2018). "Hermes 'trained managers to mislead tax inspectors'". The Guardian. Archived from the original on 20 January 2019. Retrieved 20 January 2019 – via www.theguardian.com.
  11. ^ Roberts, Gareth (9 June 2017). "Hermes hits back at GMB insurance claims". Fleet News.
  12. ^ Neate, Rupert (14 September 2017). "Sports Direct challenged by MPs over claims it underpays couriers". Guardian.
  13. ^ Siddique, Haroon (25 June 2018). "Hermes couriers are workers, not self-employed, tribunal rules". The Guardian. Archived from the original on 25 June 2018. Retrieved 25 June 2018.
  14. ^ Faragher, Jo (25 June 2018). "Hermes drivers ruled as workers, not self-employed". Archived from the original on 20 January 2019. Retrieved 20 January 2019.
  15. ^ "Coronavirus: unions attack 'paltry' sick pay for self-isolating couriers". The Guardian. 16 March 2020. Archived from the original on 1 April 2020. Retrieved 1 April 2020.
  16. ^ Investigating Delivery Service - YOUR Packages Are Sent to Auctions? - Joe Lycett's Got Your Back (11'38" video clip). Channel 4. 26 April 2020 – via YouTube.
  17. ^ "Joe Lycett's Got Your Back - Series 2: Episode 3". Channel 4. 24 April 2020.
  18. ^ Black, Gilley, Ball, Erin. "13/02/2022". Plymouth Herald.{{cite web}}: CS1 maint: multiple names: authors list (link)
  19. ^ Scott, Jim (18 December 2022). "Evri must review Christmas parcel issues, says Durham MP". BBC.
  20. ^ "Avonmouth Evri fire: Firefighters called to large Bristol blaze". BBC News. 16 April 2024. Retrieved 16 April 2024.
  21. ^ Tims, Anna (18 January 2023). "Evri's phone number is even harder to find than my parcel". The Guardian. ISSN 0261-3077. Retrieved 20 August 2023.
  22. ^ "'Lock your doors!' Delivery drivers enter homes to leave parcels". Kent Online. 29 July 2023. Retrieved 20 August 2023.
  23. ^ Layton, Josh (13 June 2023). "Evri driver takes picture of unknown man with parcel before dumping it on step". Metro. Retrieved 20 August 2023.
  24. ^ Wright, Georgia (22 May 2023). "Amazon gives Evri accredited seller status to deliver its Prime parcels - Retail Gazette". www.retailgazette.co.uk. Retrieved 20 August 2023.
  25. ^ Read, Nick (1 March 2024). "Post Office and Horizon: Ensuring full and fair redress". House of Commons.
  26. ^ Gray, Jack (11 March 2022). "Hermes rebrands and agrees pension deal for gig economy workers".
  27. ^ McDonald, Andy (28 May 2021). "Exploitation of Hermes Drivers". House of Commons.
  28. ^ Rawlinson, Kevin (3 June 2021). "June 2021". The Guardian.
  29. ^ Rawlinson, Kevin (15 April 2021). "Some Hermes drivers working for free for hours a day, union says". The Guardian.
  30. ^ GMB, GMB (21 September 2022). "EVRi deliver blow to single mum who dared to complain". GMB.
  31. ^ Martin, Hugo (1 June 2021). "Response to BEIS committee". House of Commons.
  32. ^ "MP questions whether Evri should be investigated for 'poor customer service'". The Independent. 11 January 2023. Retrieved 21 March 2024.
  33. ^ Baker, Elizabeth (12 January 2024). "EVRi couriers accept 13% pay increase". Parcel and Postal Technology.
  34. ^ Farr, Crowley (29 January 2024). "Exclusive: Advent looks at options for UK parcel delivery firm Evri -sources". Reuters.
  35. ^ Corporate News, Acquisitions/Mergers (25 July 2024). "Apollo (APO) to Acquire Evri". StreetInsider.com.
  36. ^ S & P Global, S & P Global (23 September 2024). "U.K.-Based Parcel Delivery Company Edge Finco PLC (Evri) Assigned 'B+' Rating; Outlook Stable". S & P Global.
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