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Matkahuolto grows faster than the industry by investing 25 million to meet Finns’ needs – “We want to be the consumer’s first choice”

16.10.2023

Matkahuolto has been a leading player and developer of domestic passenger and parcel transport for 90 years. The company is now seeking almost 70% growth by focusing on the rapidly changing needs of consumers in its new strategy.

Logistics company Matkahuolto is making major changes in its operations with a new strategy and a new CEO. During the five-year strategy period, the company seeks to increase its turnover from EUR 90 million to EUR 150 million by investing 25 million euros in customer experience and service development, among other things.

The changes are driven by rapidly shifting customer needs. While domestic parcel traffic used to be about celebrating people on special occasions, the receipt and dispatch of parcels has become more commonplace, especially with the growth of e-commerce, but also with the growth of peer-to-peer commerce and the circular economy. Parcel delivery has moved to digital channels and parcels are dropped off and picked up at the nearest service point, typically a parcel locker, which is open 24 hours a day.

We go where the consumers are and where we hear that our services are needed. This is why, for example, we have significantly increased the number of parcel lockers. In the coming strategy period, we will invest in the signals coming from Finnish consumers. For example, Finns are ordering more and more parcels from abroad, so we are investing millions in a new international logistics terminal next to the port in Turku,” says Mika Husso, who left Telia in January to become CEO of Matkahuolto.

The purchase of long-distance tickets has moved to digital channels, and Matkahuolto has responded to the change in demand by putting all its tickets online and by integrating tickets from several other operators into its Trips and Tickets app. The app is a pioneer in travel chains – it has been used to purchase Finland’s first digital long-distance bus-train travel chain.

On the other hand, Matkahuolto’s Kutsukyyti services, developed together with Finnish cities, guarantee equal, accessible and smooth public transport services also in small towns and less populated areas. Matkahuolto sees that Kutsukyyti has growth potential in the organisation of transport in wellbeing services counties and small local transport areas.

Matkahuolto, ranked highest by consumers, seeks biggest growth in its history.

Matkahuolto is looking for strong growth in parcel services, especially in domestic business-to-business transport. The company expects the domestic parcel market to grow by 50% by 2027.

While market shares are otherwise predicted to remain stable, we are aiming for the biggest growth in our history, reaching a turnover of EUR 150 million by 2027. Matkahuolto is already the parcel brand most valued by consumers, and we intend to significantly increase our market share through our investments during the strategy period. We want to be the consumer’s first choice in the future. The best-known, most trusted and most preferred operator for sending and receiving parcels,” Mika Husso summarizes the company’s objectives.

From zero to millions in three years - International parcel market is booming

Matkahuolto has identified a large opportunity for growth in international parcel services, where growth is sought through both direct e-commerce customers and partnerships. “We increased international parcel volumes from zero to a few million in three years. We believe that the volume of international parcels will multiply by the end of the strategy period, so this is a great opportunity for us,” Mika Husso continues.

Matkahuolto’s international growth is supported by carefully selected strategic partners, such as GLS (General Logistics System), through which products from European online stores arrive in Finland and those from Finland leave for Europe. Bring supports Matkahuolto to increase parcel traffic between the Nordic countries, and Omniva to increase e-commerce traffic from the Baltics and via the Baltics from Asia to Finland.

By the end of the strategy period, we will not just be a domestic player, but aim to have a global footprint in the parcel market,” Mika Husso sums up the objective.

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