City Link commits to owner-drivers
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joanna.bourke@rbi.co.uk CITY LINK INSISTS ownerdrivers are still vital to its delivery model but that its reliance on adhoc subbies needs to be slashed.
Speaking exclusively to CM, City Link sales and marketing director Duncan Faithfull says: “We want to make it clear that we still have a commitment to subcontractor drivers and their leets. We have no issue with owner-drivers in the City Link branding as they have been a successful part of the business. But we do need to change our over-reliance on ad-hoc subcontractors who should be used only at peak times.” Faithfull’s statement is in response to City Link’s parent company Rentokil Initial blaming a reliance on subcontractors as playing a large part in City Link’s 2010 operating loss of £9.6m (CM 24
February). As part of its recovery plan, City Link is increasing its fulltime employees to 75% from 50%; reducing owner-drivers from 25% to 15%; and having a maximum of 10% of ad-hoc subcontractors.
Rentokil chief executive Alan Brown pledges that by October technology investments will be implemented to improve route planning and fuel usage.
Faithfull says: “The restructure ensures 90% of drivers will be in City Link-liveried vehicles.” City Link intends to be back in black by the end of this year.