This business provides the technology in the form of a website and app to enable messengers and couriers to receive jobs and customers to select the courier service that best fits their requirements. A customer can enter the full details of their delivery and be presented with a range of courier options from which they can choose. The courier sets their own delivery price for each job and pays a fixed percentage transaction fee to the platform for the use of the service. The business provides a technology market platform for all forms of delivery, offering maximum flexibility in terms of items to be delivered, means of delivery, timescales and price. This provides the customers with maximum choice and the courier with flexibility in terms of the types of deliveries they want and are able to undertake.
There is demand for more immediate deliveries (including same-day and “on demand”) and for more precise or “nominated” delivery slots - i.e. deliver when people are actually at home. Both are driven by competitive pressures to improve the delivery experience for customers. Retailers are realising how important the delivery is to the overall shopping experience.
The business directly addresses these trends and as a consequence is winning new clients to capitalise on the growth in the sector.
The business is highly scalable, just as Airbnb does not own any hotels, the business does not own any courier vehicles or employ any couriers. Instead it operates as a marketplace. The business has the technology and is positioned to scale into a very large player in a fast growing and changing industry.
The business has also developed an API which allows the technology to be seamlessly integrated into other e-commerce websites, further broadening the application and potential market reach.
The e-commerce market is growing rapidly and the estimated market for the product is Eur £20-30bn by 2020.
It is forecast that the platform will be handling £65m in deliveries by 2025 generating a turnover of nearly £13m with the percentage margin increasing as the business grows due to its high scalability.
The current owner is either looking for an investor to help support the growth plan and share in the lucrative forecast returns or is willing to sell the business at the right price, with offers in the region of £1.5m being considered.