Zoom2u soars more than 70pc on debut, predicts growth in ecommerce delivery market
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Top of the tech stocks is the new kid on the block Zoom2u Technologies (ASX:Z2U) which jumped a huge 77.5% after listing today at 20c per share.
The company raised a tidy $8 million for its IPO and is currently trading at 35c per share.
The innovative delivery platform and software as a service (SaaS) business is basically like uber for ecommerce deliveries – it connects customers to a network of local drivers for fast deliveries.
Since launching in 2014, the platform has processed over 2 million deliveries.
And the company says its well positioned to capitalise on the growth in the Australian delivery services market – which was valued at approximately $5.6 billion in FY20 – and is being driven by the increase in e‐commerce and the outsourcing of delivery services.
Plus, the company has several pending integrations with third party applications such as Shopify, Square and WooCommerce.
Confident of delivery services growth
“Zoom2u’s vision is to be the future leader in last mile delivery both in Australia and across the globe,” CEO Steve Orenstein said.
“The first two months of FY22 have started strongly with lockdowns in New South Wales and Victoria supporting growth in revenue, deliveries and gross marketplace value (GMV).
“We remain confident that the company will continue to drive growth, delivering sustained operational performance for shareholders in FY22 and beyond.”
The company has a large customer base of almost 70,000 individuals, SMEs, and enterprise customers across various industries – connected to over 8,600 drivers.
And each delivery typically generates fees of ~21% of GMV.
Enterprise customers – which have contributed over $10,000 in annual GMV – have grown from 9% of GMV in FY15 to 57% in FY21, with customers including Nespresso, DHL, and Pact Group.
Delivery management software growth
The company says its complimentary SaaS technology product, Locate2u, enables businesses to manage bookings, optimise routes, track delivery teams, and share live locations with their customers.
It operates in the global delivery management software market, which was estimated at $6.9 billion in 2018 and is forecast to grow to $13.8 billion in 2026 at a CAGR of 9.3%.
Zoom2u reckons the growth in this market is driven by the increased automation of delivery management processes like vehicle scheduling and route planning as well as the drive to greater efficiency in delivery operations.
The Locate2u software was launched in late 2020 and as of 30 June 2021 had 59 customers using the product, which has a recurring revenue model with a monthly subscription fee.
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