(Yicai Global) May 15 -- Shanghai consumers today called off a boycott of Shenzhen Hive Box Technology’s smart lockers.

Both sides agreed to fully restore the lockers’ operations under the coordination of the Shanghai Municipal Postal Administration, the Shanghai Observer reported, without giving more details on the agreement.

The consumer embargo started after Hive Box, which accounts for about 44 percent of China’s market for smart lockers, said late last month that it would launch a membership system and charge for storing parcels beyond 12 hours. The Shanghai Observer also reported earlier that the Shenzhen-based company had decided to give a free month’s membership to the boycott’s initiators following the backlash.

Hive Box unveiled a paid membership system on April 30 with non-members able to leave deliveries in lockers free of charge for the first 12 hours, but they would have to pay CNY0.5 to CNY3 (7 to 40 US cents) per parcel after that time.

Hive Box was set up in 2015 by five Chinese leading logistics companies, including SF Holding. It has introduced nearly 180,000 sets of lockers nationwide. Its profit mainly comes from user fees for deliverymen and generally does not charge community owners.

Smart lockers address the last-mile logistics infrastructure problem, an official at the Shanghai Municipal Postal Administration said. The city will promote the expansion of smart lockers to solve point-of-delivery issues and strengthen the regulation and management of smart locker operations, he added.

Editor: Peter Thomas