(Bloomberg) — InPost SA shares fell to the lowest in almost two years after the Polish parcel locker operator reported slowing volume growth in its home country amid a spat with e-commerce company Allegro.eu SA over delivery options.

InPost shares, which trade in Amsterdam, plunged as much as 13% to the lowest since November 2023. The company reported second-quarter parcel volume growth in Poland of 6% — the slowest pace in four years. It also said it filed a court complaint against Allegro after the platform changed the way it shows delivery options. InPost alleges that Allegro is redirecting customers to its own lockers over InPost ones.

“The deteriorating relationship with Allegro is weighing on the shares today,” said Jefferies analyst David Kerstens. “Although the impact on InPost’s volume in Poland was limited to only 2% in the second quarter, investors were more likely anticipating a resolution with Allegro’s new leadership team.”

“We still want to cooperate as partners and to keep a win-win approach,” InPost founder and chief executive officer, Rafal Brzoska, said on the company’s earnings call. “But it’s Allegro that manipulated the way it shows delivery options for buyers, breaking our contract.”

A representative for Allegro said that InPost’s claims are “completely groundless and not based on the agreement binding both parties.” Shares in the e-commerce marketplace fell as much as 3.4%.

InPost’s second-quarter sales and adjusted Ebitda both beat estimates. Still, the dispute with Allegro has raised concerns about whether it can continue with its strategy of funding foreign expansion with profits from its Polish business. The company took over UK delivery service Yodel earlier this year, and made a small acquisition in Spain in July. Foreign revenues now account for 52% of InPost’s total sales, according to Tuesday’s statement.

InPost and Allegro previously cooperated closely and were especially intertwined during the boom in online shopping caused by Covid-19 lockdowns. At that time InPost offered Allegro customers special deals when ordering parcels via its network. But the relationship has soured in recent years as Allegro started to build its own alternative delivery methods in cooperation with other couriers including DHL Group.

Wood & Co. analyst Lukasz Wachelko said the selloff in InPost shares may be overdone, given the firm’s still-solid margins in its Polish operations.

Allegro probably want to have some bargaining power to renegotiate delivery fees, said Wachelko, who rates InPost a buy. “But both companies still need each other.” 

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