| Hermes Europe GmbH | |
| Type: | Private |
| Industry: | Courier |
| Founded: | in West Germany |
| Location City: | Hamburg |
| Location Country: | Germany |
| Area Served: | United Kingdom, Italy, Austria, Germany, China, Russia |
| Key People: | Carole Walker (CEO) |
| Products: | Parcel delivery |
| Parent: | Otto GmbH |
Hermes Europe GmbH is a German delivery company headquartered in Hamburg, owned by the retail company Otto GmbH.[1]
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.
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]
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.[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 16th 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]
In May 2023, EVRi was credited by Amazon for its alleged 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]
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.” [25]
There has been correspondence between Hermes and parliament regarding courier hourly remuneration. A letter from Hermes dated 1 June 2021 stated the average hourly pay was £15.61.[26]
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.[27]
Carolyn Harris MP questioned whether EVRi should be investigated over its “poor customer service”. 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?”[28]
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.[29]
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.” [30]
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.[31]
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. [32]