This delivery tech business wants to be the next GetSwift — without the mistakes
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VROMO, a private Irish delivery tech company that has just launched in Australia, New Zealand and the US, wants to be the next GetSwift — but without the drama that has haunted the once-vaunted Aussie tech stock.
Originally founded as WeBringg in Dublin, VROMO laid the groundwork for its Aussie move when it acquired Perth-based tech startup Spatula.io last year.
Perth is now home to the company’s Australian headquarters with eight staff, including its chief technology officer Andrew Walker, the founder of Spatula.io.
VROMO’s mission is to connect brands to customers during last mile delivery, a term used in the industry to describe the movement of goods to its final destination.
Last mile delivery is where GetSwift (ASX:GSW) specialises. The company received a massive amount of hype as its shares grew in value to $4 in December 2017 — a 1,900 per cent increase on the price offered during its IPO in November 2016.
But the bubble soon burst after a Fairfax report alleged the logistics software company had failed to update the market about contract cancellations.
The company reported increased revenue for the 2019 financial year, but the full-year loss rose 61 per cent to $19.5m.
Walker told Stockhead he had been keeping a close eye on the GetSwift saga.
“We have been following the reports on GetSwift for quite some time given the overlap of our interests,” he said.
“From what I have read, GetSwift have run into troubles of different kinds on a number of fronts.
“Resolving the ongoing issues must be a distraction from their core operational and business objectives. VROMO hasn’t run into these sorts of issues, and we see nothing but opportunity for significant growth in Australia and other markets.”
Walker added that VROMO’s market advantage came from its care for customers.
“GetSwift and others have focused on the importance of the delivery itself and never given primacy to the importance of the relationship with the customer,” he said.
“They are typically focused on the operational efficiency that comes from implementing driver apps, automated dispatch algorithms and web-based command centres for digitising and optimising the delivery team.
“GetSwift’s business model, like others in the market, is to charge fees to use their platform to manage those deliveries.”
Walker said VROMO’s focus was on helping brands connect with customers and build customer relationships using delivery as the medium.
“So in complete contrast to GetSwift and others, VROMO is offering our full suite of delivery management features for free,” he said.
“On commercial prospects now, I’d only say that VROMO is great technology and we are bringing a very compelling offer to the Australian market. So GetSwift and others have some stiff competition.
“I’d encourage anyone using our competitors’ products to take note of the features that they are using now and what they are paying for them and to compare those features to what they can access for free in VROMO, and all of the extra benefits that VROMO provides, and draw their own conclusions.”