With a supposed 3D printer revolution around the corner and email showing no signs of exhaustion, after dancing on the grave of the traditional letter for the past decade, delivery services as we know it may soon become a thing of the past.
However, in the here and now, consumers looking to buy 3D printers and other goods still need them delivered. More importantly, there is a booming trend to get them delivered today, if not yesterday, which has encouraged delivery service GeoPost to step up to the plate with its rocket boots on.
GeoPost, the international delivery subsidiary of France-based La Poste, has thundered onto the corporate venturing scene this week, having formerly kept a low profile, landing two deals in a matter of days that could potentially strengthen its ability to deliver express e-commerce parcels.
Last Friday, the firm announced that it had picked up an undisclosed stake in Worldnet Direct, the UK division of US-based Worldnet Shipping, which specialise in ecommerce deliveries. Then on Monday, Geopost signed off on a $2m deal with UK-based Shutl, which the firm previously backed, along with fellow current investor Hummingbird Ventures in a round led by UPS.
Shutl, the self-described fastest delivery service holds a record of 15 minutes from checkout to delivery and is attempting to crack the EU and US markets after a successful rollout in the UK. Tom Allason, founder and CEO of Shutl, estimates that the US market will be worth $26bn by 2016 and he wants in.
He explained the GeoPost relationship to Global Corporate Venturing: “The rationale for us is that we know the UK market very well, and UPS and GeoPost know their markets very well. UPS can deliver what we need to get into the US, and we see GeoPost’s value in Europe, who give us a wealth of local knowledge.”
Allason confirmed that GeoPost was the unnamed backer from a series A round last year along with Hummingbird, but did not disclose the size of the investment. He told us that GeoPost’s investment in both Shutl and Worldnet made sense in a sector where most mail carriers were struggling to get ahead.
He additionally disclosed that Olympic Gold medalist Usain Bolt was “in discussions” with the company after Shutl released an open letter offering a 1% stake in the company in return for the fastest man on the planet becoming the face of Shutl.
Meanwhile, the Worldnet deal will see GeoPost incorporate Worldnet’s international delivery solution into its UK brands DPD and Internet express. Still in trials in the UK, Worldnet hopes to roll its service out into Europe by 2013.
Stuart Hill, the managing director for Worldnet, feels that GeoPost will bring the sales infrastructure Worldnet needs to succeed in the UK. He added: “As a corporate partner we are confident that GeoPost will enable us to grow at an expedited pace and make a real and positive impact on the industry.”
Speaking about the Worldnet deal, Iain Johnson, chief operating officer of GeoPost International said: “GeoPost is excited to be able to support Worldnet and their approach fits very well with what we are already doing in both our domestic and international markets.”
He went on to confirm the significance of ecommerce to GeoPost, moving forward, by saying: “There is no question that e-commerce will continue to be of increasing importance as a driver of international parcel volumes and staying innovative in the retail space is key.”
While GeoPost has ventured before, it would seem the third-largest express delivery service in Europe is gearing up to take a bigger slice of the ecommerce delivery pie, and it’s not alone.
As the traditional letters business continues to falter following an unrelenting assault by email, consumer parcels is where all eyes in the delivery sector are looking.
Online retailers Amazon and eBay are etching into the consumer delivery sector. Amazon announced on Monday that Amazon Prime, Amazon’s flat-fee express shipping service, is now shipping more items than its free Super Saver shipping offer. Meanwhile, eBay is introducing eBay Now in the US, a mobile application that allows customers access to same-day delivery from big retailers.
Royal Mail is also beginning to tune in. Earlier this month, the postal service teamed up with China-based postal company ZJS Express to provide a business-to-business Europe-to-China express delivery service. Similarly Geopost’s parent La Poste also pursues corporate venturing through Xange Private Equity.
Obviously, GeoPost believes the future lies strongly in the ecommerce delivery and is looking to expand into the sector, even if it is one day just delivering 3D printer ink.