Australian shoppers are impatient and that impatience is increasing. It’s why delivery tech company Zoom2u Technologies (ASX: Z2U) continues to gather momentum for its same-day delivery services as more retailers engage the service as an option for their customers to receive their online purchases in record time because it seems that express post just isn’t fast enough.
For the 12 months ended 30 June 2022, Zoom2u generated $4.6 million in revenue which represented a 63% increase on the previous year.
Driving the revenue growth has been enterprise partnerships with retailers that can offer same-day service for a premium fee, some of which may be passed on to Zoom2u with amounts differing between clients.
“The agreements signed with new enterprise customers such as Bunnings and Decathalon are a validation of the quality of the Zoom2u platform and our value-add services. We expect to see continued growth from volumes with Bunnings as the roll out to additional stores continues,” said Zoom2u Founder and CEO, Steve Orenstein.
“We continue to work with a number of potential enterprise customers in trialing the Zoom2u platform and will update the market as these trials transition to executed agreements.”
To support the demand growth of Zoom2u as a value-add delivery service, Zoom2u has been upping its marketing efforts. These have included billboard advertisements and a marketing agreement to decal 13 vans that are regularly on the road throughout major cities where Zoom2u’s same-day delivery services are offered. Those vans however are not used for Zoom2u deliveries which are instead performed by more efficient vehicles similar to how food delivery services operate.
In addition to their same-day delivery service, Zoom2u also offers a Locate2u product sold as a B2B business solution for GPS tracking linked to an online platform. With tags that can be applied to vehicles, equipment and freight. Locate2u is a plug-and-play service that generated $270k revenue in the June quarter with more than 100 new customers signing up over the period including Godden Food Group, Del Re National Food Group and Clark Rubber.
Zoom2u is expected to release their first set of full year results next month as an ASX-listed company following their IPO in September 2021 when raising $8 million at a $0.20 Offer Price with a market cap of $34.7m at the time.
Unfortunately no same-day delivery service is available on Bunnings sausage sizzle products.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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