Big box update: Delivery and store network

Zoom2u Technologies (Z2U) recently announced its partnership with Bunnings Group for the use of its delivery platform.

The Zoom2u platform is an Australian owned delivery platform that connects users with local independent couriers in their area for fast, same-day delivery. It provides customers with a live tracking link showing the real-time location of the delivery as well as an estimated time of arrival.

The agreement is not exclusive and follows the completion of a trial undertaken with Bunnings across select stores in Australia. Under the agreement, Bunnings is under no obligation to meet a minimum volume of spending or fee commitments.

The finances are yet to be revealed as it is dependent on delivery volumes. In The Market Herald, Z2U founder and CEO Steve Orenstein, said:

...To be chosen as one of Bunnings' last mile delivery providers is a validation of the Zoom2u Platform. It has been a pleasure working closely with Bunnings over the past few months as they trialled the service.

About Zoom2u Technologies (ASX:Z2U)

Z2U's core service is the Zoom2u platform, which is a tech-based courier service that allows accredited drivers to make deliveries. It is an algorithm-based platform that can respond with flexibility to demand surges, and provides detailed location data for customers.

The company does not have warehouses and does not own or lease a fleet of vehicles. Instead it has a team of over 20 tech developers tinkering with software for customers and more than 7000 drivers. Unlike Amazon, which processes deliveries from warehouses and delivery centres, Zoom2U often facilitates deliveries from brick-and-mortar stores to consumers.

Mr Orenstein said this model gives smaller players an advantage, as businesses can "leverage their retail footprint" instead of working through the Amazon ecosystem. Stores can operate as "micro-warehouses", he said.

That allows them to be really close to the consumer, and to be able to do an even faster delivery because the delivery system is really short.

The platform passed 2.7 million completed deliveries in late March, as the market shifts towards customers with larger volume requirements.

The company also has the Locate2U platform, a SaaS-based tracking delivery service that allows clients to manage their logistics in-house. It is essentially a white label product for businesses to manage their own delivery fleets. Locate2U's customers Amart Furniture, Bing Lee, Super Pharmacy, and waste management firm Cleanaway.

Z2U has been operating for eight years after it was founded in 2014, with early backing from Perennial Value Management, Gandel's Invest (the investment vehicle for the billionaire Gandel family) and Deals Direct co-founder Mike Rosenbaum.

Its client base now includes names such as Australia Post, Best & Less, Couriers Please and JayCar.

By December 2021, Z2U also completed the acquisition of the Local Delivery Shopify App in an $880,000 all-cash deal. Integrating the Local Delivery app gives Zoom2u direct access to another 570 customers across more than 45 countries.

After its ASX initial public offering (IPO) in September 2021, the business raised $8 million to fund its future growth.

For more information, visit the Zoom2u home page here:

Zoom2u delivery platform

Rocklea store

Bunnings' Rocklea store has reopened with a revamped cafe and kitchen design centre after being impacted by the floods. It had to seek specialist advice to ensure the warehouse was structurally and hygienically safe to reopen, according to The Courier-Mail.

However the hardware retailer said it still had not decided what to do with its Oxley store, although redevelopment options in the coming six to 12 months could include a flood-resilient design.

The revamped Rocklea Bunnings now includes energy efficient LED lighting throughout, a children's playground, new bathroom displays and new format Trade Desk for tradies.

Bunnings Shepparton

Bunnings Shepparton celebrated its fifth birthday on the Queen's Birthday long weekend, marking five years of trading. Bunnings Shepparton complex manager Trish Fedley said staff at the store were excited to be celebrating the fifth birthday. She told Shepparton News:

We love being part of the Shepparton community and it's a great milestone that myself and the team are really proud of.

Helping customers with their DIY and project needs, and supporting our local community groups through the sausage sizzle and other hands-on activities, has been the highlight for us.

Sources: The Market Herald, Stockhead, Inside Retail, Rask Media, The Courier-Mail and Shepparton News