With fast door-to-door delivery expected by Australian consumers that have been online shopping through the pandemic, delivery tech company Zoom2u (ASX: Z2U) is racking up business clients keen for their goods to be delivered within 2 hours.
Such clients don’t come much bigger than telecommunications giant Telstra (ASX: TLS) which has linked up with Zoom2u, promoting delivery of goods within 2 hours. This is expected to be particularly popular around the launch of new Apple and Samsung headsets in the coming months.
“During COVID, our Call & Collect options have taken off. Customers are looking for more ways to shop; more offers and more immediacy and that is why we have introduced Telstra Day, and now we are introducing superfast delivery to give our customers more of what they want,” said Telstra Consumer & Small Business Executive, Michael Ackland.
Facilitating the delivery of goods from select metropolitan Telstra stores will be Zoom2u drivers signed into the tech companies share economy platform specifically built for speedy door-to-door delivery of general goods. Doing so, Telstra does not need to establish its own delivery division and will be able to track the status of deliveries in live-time on the Zoom2u app.
To ensure the security of high-value purchases, drivers will only deliver to designated Telstra account owners that present photo ID as an add-on requirement on top of standard Zoom2u driver protocols.
At this stage, no material expectations of the partnership have been disclosed by the delivery tech company, citing that revenue will be entirely dependent on service uptake with no minimum volume or fee commitments.
The service will commence with just 25 Telstra retail stores but is a prime example of how other businesses can utilise the sharing economy to fulfill customer orders with minimal capital expenditure.
Since listing on the ASX on 10 September 2021, Z2U shares have been hugely popular amongst Australian investors that missed out on the IPO when the Company successfully raised $8 million at an Offer Price of $0.20 per share. Since then, Z2U shares have more than tripped to last close at $0.72 following news of their agreement with Telstra as investors seek a slice of the delivery services market.
Market research firm Frost & Sullivan estimates that the delivery services market in Australia alone is valued at $5.6 billion per annum, which has been accelerated by the pandemic and reliance on delivery services like Uber Eats and DoorDash.
Since being founded in 2014, Zoom2u has built a network of 70,000 individual and enterprise customers across various industries connected by the 8,600 drivers on their platform. Unlike other service providers, Zoom2u drivers can deliver anytime of the day with varying fees depending on time, parcel size and vehicle required.
Alfred Chan is an Analyst at Emerald Financial, specialising in ASX-listed small cap companies.
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