Hermes Europe

For the French luxury brand, see Hermès.

Hermes Europe GmbH

Company type	Private
Industry	Courier
Founded	1972 (1972) in West Germany
Headquarters	Hamburg , Germany
Area served	United Kingdom, Italy, Austria, Germany, China, Russia
Key people	Carole Walker (CEO)
Products	Parcel delivery
Parent	Otto GmbH
Website	www.hermesworld.com

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

History

Volkswagen Crafter delivery van for Hermes in Germany

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

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

EVRi-Hermes UK

History

In November 2020 Advent International announced it would partner with the current management team to acquire a 75% stake in Hermes UK. 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.

Criticism

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".

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.

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. During this investigation a whistleblower claimed that Hermes coerced managers into misleading an HMRC investigation.

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.

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."

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.

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.

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.

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.

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. 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.

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. 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. According to many more sources, EVRi drivers scam the customers by scanning the parcels as received but later taking them with themselves.

Links to Amazon/Post Office

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.

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."

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

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.”

Parliamentary history, claims of exploitation, poor working conditions, and GMB Union criticism of EVRi

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.

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.

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.”

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."

The issue of mislabeled items, as first highlighted by Frank Field MP in 2017 (reported above) remains, and was again highlighted by the GMB union during a visit to Huddleston in August 2023.

HampShire Live reported in February 2023 that 'A number of couriers have lifted the lid on what it is like working for delivery company EVRi and it seems there are a fair few unhappy workers on their payroll. One such employee works for the firm in Manchester and has revealed a tale of low pay, harsh working conditions and poor morale among his colleagues'.

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".

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?”

In January 2024 a 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 reportedly 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. Tracy Beeson, GMB London Region representative said “GMB is not resting on its laurels, starting next with a campaign to see improved Health and Safety at delivery units"

Edge Finco PLC (EVRi) September 2024

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. 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.

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, Company Number 15868287) has been assigned a 'B+' Rating; Outlook Stable.

External links

• Official website