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Prime Mover Magazine

Delivery start-up challenging Uber and Sendle

Delivery start-up Zoom2U has announced it is on track beat Uber and Sydney rival Sendle into Australia's $3.9 billion-a-year pickup-and-delivery market.

According to the Australian Financial Review (AFR), the service – which enables private drivers to become courier – has just raised $1.85 million for a $3 million total since 2014.

Founder Steve Orenstein told AFR the funding made Zoom2U the best funded contender to disrupt the fragmented parcel delivery industry, which IbisWorld said is lead by Toll Holdings and DHL Express with market shares of just 12 per cent and 9.3 per cent respectively.

Competing start-up, Sendle, had raised $1.8 million from NRMA in 2015, albeit with a different model that is based on providing online access to excess capacity in existing courier networks.

$85 billion juggernaut Uber has not entered the Australian market with a courier service just yet, with Orenstein saying market entry barriers could be higher than expected.

"Delivering people and delivering parcels are two very different propositions," he told AFR.

“If it was that easy, Uber would be here doing it already. With the taxi industry they were disrupting a few big, inefficient businesses, but there's thousands of courier companies in Australia."

Orenstein claims 14,000 people have had at least one parcel delivered through Zoom2U already, with part of the latest $1.85 million injection to be used to attract new drivers.

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