I’m Rob, co-founder and CEO of Onto, for those who haven’t heard from me before. I’m here today to give you an update on our deliveries and collections.
To start with, I want to thank all of you for being active in our community and always giving us your thoughts and feedback. We continue to listen and learn from you to offer the best possible service to all our subscribers.
Over the past few months, we’ve been working hard to develop our service and apologise unreservedly to those of you whose deliveries have been adversely affected by the nationwide driver shortage, coming at a point in time when we have also been rapidly expanding. It’s been a challenging period for logistics throughout the world, and I promise we are doing our utmost to deliver on the high standards that you deserve and that we demand of ourselves. We recognise that regardless of this, we need it to improve, and we are taking a number of actions to improve the delivery performance and communication from our logistics partners. Performance is improving, but we know we can do better.
We switched to a home delivery, swap and collection service for a standardised cost back in July 2020, due to restrictions around the pandemic and in an effort to keep everyone safe. It was initially introduced as a temporary solution for unprecedented times and has since been operating at a substantial loss to the business.
Therefore, as of 1st January 2022 the new price for delivery or collection of a car will be £99.50.
To be clear that means if you book a delivery or collection before 1st Jan 2022, you will pay the existing price. For example, if you booked a car on 17th Dec 2021 for a delivery date on 7th Jan 2022 you will pay £49.50. However, any delivery or collection booked from 1st Jan onwards will pay the new price of £99.50. We will continue to waive all delivery fees if your car is not delivered on the same day as booked.
I hope you understand that this is not an easy decision to take, but that the current pricing is not sustainable for us as a business, especially as logistics costs are rising due to the driver shortage. We don’t believe it would be fair for existing customers to supplement deliveries and collections through their subscription, so for that reason we have taken the decision to increase delivery prices instead of subscription prices. We are not trying to profit from the delivery fees, but instead just make sure we can cover our costs and ensure high standards from our delivery partners.
On a more positive note, we know that one of your favourite aspects of being with Onto is the flexibility to swap between cars and try the latest models. That’s why we have committed to keeping the price for swapping cars at £49.50.
I appreciate that price rises are never welcome news, but I hope you understand the context for these changes and know that we’re working incredibly hard to continue to improve our offer.
We are looking at all available options to create the best all-round experience at a fair price. This includes exploring whether ‘swap points’ can be brought back, but given that we expect to make more than 30,000 vehicle movements in 2022, hopefully you can understand this is quite a bit more challenging than back when we had a few hundred cars in our fleet!
As always, thanks for your support and feedback.