We operate parcel pickup network consisting of smart lockers and retail shops, which increases the efficiency of last mile delivery courier by 10 times and reduces costs for online merchants/couriers/end-customers.
For the sales of solution business (sales of smart lockers), we are currently the number 1 solution provider to postal organizations in Asia in terms of number of tender closed. For operation of smart lockers business, we already have footprint in 5 regions across the globe (Hong Kong, Italy, Australia, Indonesia and Brazil) and we are the second largest click&collect network (consists of both smart lockers and retail shops) in Hong Kong after SF Express (Largest courier company in China). For 2020, we have reached almost USD7 million in total revenue and we expect our revenue will maintain a high growth trajectory.
Our end-customers are any customers that can access the internet and shop online. We are serving in the global last-mile delivery market, and this market is expected to reach 220+ billion of parcel shipping volume by 2026 and USD55.2 billion market size by 2025 (compared to USD30.2 billion in 2018).
Problem or Opportunity
As e-commerce continues to grow quickly, the demand for last-mile logistics has become higher and higher. Traditional home-delivery involves significant cost and inconvenience.
Traditional home-delivery problem For shoppers: need to be at home to collect parcels, often timing cannot be chosen, high cost For online merchants: high cost For couriers: failed deliveries, high cost, low efficiency, Co2 emmission of truck
We see these problems and we believe our click&collect network can solve these problems and customers are willing to pay for our solutions.
Solution (product or service)
Our smart lockers are automated with our software, and are placed in convenient locations where end-customers can pick up their parcels from the lockers 24/7.
Benefits of using our click&collect network For shoppers: can pick up at their own chosen venue and time, lower cost For online merchants: lower cost, increase sales For couriers: eliminate failed deliveries, lower cost, higher efficiency, reduce Co2 emmission
In terms of our click&collect delivery platform, our major market is Hong Kong, where we are the second largest click&collect platform behind SF Express (largest courier company in China). SF Express have over 1,200 click&collect pick up locations in Hong Kong where we have over 500 click&collect pick up locaitons in Hong Kong.
In terms of our sales of smart locker solution business, we are the number 1 smart locker solution provider to postal organization in Asia pacific in terms of number of tenders won.
Advantages or differentiators
Compared to other click&collect network operators, we have our inhouse R&D capability which can continue to upgrade the software services and reduce capital expenditure for lockers. Other click&collect network operators have to rely on their smart locker solution suppliers to maintain and supply their smart locker network.
Our business can be divided into three revenue streams 1. Click&collect delivery platform 2. Smart locker software & maintenance fee 3. Sales of smart locker hardware
2019 Click&collect delivery platform revenue: USD0.8 million 2019 Smart locker software & maintenance fee: USD1 million 2019 sales of smart locker hardware: USD2.4 million
We expect our revenue can reach USD53.4 million in 2023.
For our delivery platform services, we are integrated with online merchants and couriers who use and pay for our delivery network comprising of smart lockers and retail shops, where the end-customers can pick up their parcels. We charge our online merchants and couriers a fixed fee per parcel going through our delivery network.
Money will be spent on
1. Expanding our smart locker network 2. Establishing inhouse warehouse 3. Establishing inhouse green delivery team 4. Talent acquisition
- We have to rent spaces to install our lockers, hence, if space rent increase generally, it may pose significant cost to our company. - If ecommerce market's (which our business depend on) growth to decelerate significantly, it might slow the growth of our company as well.
Incubation/Acceleration programs accomplishment
We have graduated from Cyberport (Hong Kong government-run entity) incubation programme in 2020. We have also joined the acceleration programme by Betatron (a Hong Kong renowned accelerator programme) since 2017.
Won the competition and other awards
We have received Deloitte Technology Fast 10 Hong Kong and Fast 500 Asia Pacific in 2019. We have also received ATEC competition champion in 2019 co-founded by alumni club of Havard, Columbia, MIT and Stanford.