What is PUDO? How Does PickUp and DropOff Location Work?

What is Pudo & How does pickup and dropoff work

PUDO or PickUp or DropOff location is a designated area for consumers to leave or collect their parcels from a common point. Its rise and benefits are discussed in the blog post. 

It’s time you add another abbreviation to your last-mile delivery vocabulary – PUDO or simply pickUp and DropOff is an out-of-home delivery method

Necessity is the mother of invention, and witnessing the challenges of last mile logistics firms gave birth to a method that further simplifies the last mile delivery process. 

Excited to know more about this interesting-sounding last mile delivery method, you know what to do.

(Hint: it involves scrolling 👇)

What is PUDO?

PUDO is a location that acts as a PickUp and DropOff point for orders. It could be retail outlets or grocery shops offering pickup or dropoff service as a part of a wider network of PUDO points. a designated location for consumers to receive and leave their parcels. This is typically for picking up e-commerce orders and dropping off returns.

This type of delivery method is becoming increasingly popular as retailers and manufacturers face rising demand for online delivery.  This enables them to deliver goods much faster and under budget (which is a prominent last-mile challenge).

How Does PUDO Work?

This is getting interesting.

So the 3PL or delivery partners drop bulk orders at PUDO locations where the parcels are kept. Consumers are sent notifications or emails notifying them that their orders are ready for collection at their nearest PUDO point or the PUDO point of their choice. 

At the location, the consumer can ask the store staff for the parcel and share the OTP or scan the barcode as proof of collection. In the case of unstaffed locker banks, the consumer simply has to enter the OTP or pin shared in the notification to collect the parcel.

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For returns, the consumers will raise return requests using the retailer’s or carrier’s digital interface, which can be an app or a website. This will generate a code or barcode for them to enter or scan in the locker’s interface. Once opened, they can leave their parcel, which will be collected along with others.


A Fortune 500 retailer who installed a smart locker noted that 95.9% of customers said using the locker saved them time in picking up their order; 94.3% of customers said they are likely to use in-store pick-up with lockers again, and 93.4% of customers rated their experience as “very satisfied.”

process of pudo

Where is PUDO Location Located?

PickUp and DropOff locations are generally convenience stores and departmental stores which act as your PUDO points. This also help them increase the footfall into the stores and might even increase their sales.  Many of these shoppers go on to make purchases within the store, with 70% reporting that they do so regularly.

And as for locker banks, they can be situated anywhere, like your gym parking lot (picking your dumbells and parcels together) as no employee is needed. 

What are the Benefits of PUDO?

Failed Deliveries? Who?

We can’t even begin to tell you the number of benefits PUDO delivery has to offer. 

79% of e-commerce shoppers plan to use out-of-home delivery in the future.

Higher Customer Satisfaction

PUDO delivery style means busy customers can pick up their parcels at their own convenience from a convenient location. You know what this means, right- no more failed deliveries. This will lead to a greater level of customer satisfaction. Additionally, parcels get delivered much faster.

Secured Delivery

Parcel theft has been on the rise because they were left outside the door of consumers. In the UK alone, 5 million parcels were stolen 2021. But with PUDO, chances of theft decrease as the parcels are secured in lockers or with the convenience store staff.

Reduced CO2 Emission

Instead of multiple vehicles going in multiple directions, PUDO reduces dropoffs points, reducing CO2 emissions. Strategically positioned throughout the city, customers choose PODU locations based on the proximity to their place or convenience in reaching them on their way to work.


There is a 62% reduction in miles driven to deliver an equivalent volume to PUDO compared to home delivery.

Cost-effective Alternative

Just imagine the amount of fuel logistics companies will be able to save by reducing the number of dropoffs and vehicles used. Additionally, the second attempt at delivery is not there, which is expensive for companies. 

Reasons for the rise of pudo

Automation and Optimisation of the PUDO Process

Benefits apart, the PUDO operation has to be executed in a manner that will be beneficial and cost-effective in the true sense. The only way to do that is by best last mile delivery software that allows the logistics planning to carry out smoothly. 

Dynamic Dispatch Management

Pairing orders with PUDO locations effortlessly and automatically along with providing details on the available drivers and vehicles, is the magic of last mile software.

Route Optimisation

Cutting back on fuel is a prime quest. And keeping that in mind, the software automates the trip creation and optimisation process. Furthermore, the routes suggested tick off all crucial factors helping you speed up your delivery process and reduce fuel consumption.

Live Tracking

Track your riders and vehicles in real-time to ensure that the assigned route is being followed. Additionally, the tracking is available to the customers as well through a link: this visibility amplifies customer satisfaction.

Rider App

Barcode scanning is vital in PUDO delivery, and that is why the software has a rider app apart from the admin app. Through their phone, the riders can scan barcodes and access task and product information in case of return.

Rider Roster

Get optimised and automated charts and calendars of the vehicles and rider schedules. Providing help in strategising and planning future tasks and schedules also, the system automates task assigning.

Insightful Reports

Get automated reports on how your operations are panning out. The increasing need for transparency is fulfilled by real-time reports. They contain accurate details of the orders picked and dropped, fuel expenses, and more.

Challenges of PUDO

Nearly everything comes with its share of associated drawbacks.

The same is with the PUDO form of delivery. The major challenge is the lack of PUDO points. In some countries, they have very few PUDO stations.

This lack of accessibility, especially in remote or rural areas, discourages people from opting for it. Another disadvantage is that it might be time-consuming for people who have to physically visit the location and make time to pick up their parcels.

Inconvenience is another point for people in favour of at-home delivery. Elderlies or people with mobility issues will opt for home delivery. And lastly, the issue of a limited storage period is a big turn-off for many people.

last mile delivery software

Last Mile Delivery Software

Have everything done within seconds: order sorting, route optimisation, and dispatch planning.

Don’t believe us?

Schedule A Free Demo Today

PUDO – Over Bridge for Last Mile Delivery

PUDO is exactly what you imagined it to be while reading the blog- a rope to pull you out from the quicksand of last mile delivery problems. It is beneficial not only for the logistics part of the supply chain but also for customers who no longer have to run out wet from the shower to catch their delivery agents.

But that is just not enough. The unwrinkled backend of the operation smoother will be the PickUp and DropOffs. 

To polish your backend, TrackoMile is offering last-mile delivery solutions that will be of great help. Using the software will let you be at ease at all times as the system takes care of the heavy lifting. Winning customer trust and satisfaction has never been this easy before TrackoMile.

What is PUDO? How Does PickUp and DropOff Location Work?

Tithi Agarwal

Tithi Agarwal is a content writer at TrackoBit. She enjoys writing blogs which are knowledgeable yet fun to read. And when she is not typing away to glory she has her nose buried in books.

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