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Franchise parcels plan

1st August 1996, Page 11
1st August 1996
Page 11
Page 11, 1st August 1996 — Franchise parcels plan
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Which of the following most accurately describes the problem?

by Lee Kimber • Express parcels carrier Parceline is offering its drivers the chance to become owner-drivers under a new franchise deal that lets them buy their own liveried van over four years.

The company says it wants more of its drivers and nonemployees to become selfemployed in a bid to improve productivity. Twelve drivers have already stumped up the initial £300 payment plus a £1,000 deposit. Another 70 have applied for the scheme, which promises a fuel card, full training, new uniform and a computer assessment of their likely earnings over the first year.

Parceline says its 90-band payment system makes it difficult to say how much drivers could earn per drop. But they will not

immediately have to find the £10,000 or so needed to buy and paint a van.

"Working as their own bosses means that ownerdrivers will benefit directly from the rewards of increased efficiency," says chief executive Colin Millbanks. Parceline hopes the scheme will generate more than just .£300 cash and the interest on the drivers' deposits.

It thinks drivers will v, ork harder and will want to identify potential new customers in return for a commission start ing at £6 for one-off drops.

The scheme is open to present employees, existing ownerdrivers and others, although Parceline has agreed with the Transport and General Workers Union to limit the share of franchisees to 50% of drops within the M25, and to 35% elsewhere.

O See franchising feature, CM 25-31 July.