Sydney crowdsourced courier startup Go People raises $3 million in funding
Sydney-founded crowdsourced courier startup Go People, born in 2014 as People Post, has raised $3 million in funding as it looks to grow further in the increasingly-crowded delivery startup space.
The startup did not disclose its investors, though said they comprise both individuals and “interested companies” with which Go People is exploring potential partnerships.
The startup last raised $2 million in late 2016, the raise coming in hand with a rebrand and revamping of its technology platform.
The service works by having a customer book and pay for a delivery online or via Go People’s app, with ‘Runners’ – or couriers – then able to apply to take a job, and the nearest or otherwise most suitable runner chosen. Go People stated it has 15,000 runners on the platform, delivering over 10,000 parcels each month.
Wayne Wang, founder and CEO of Go People, said the funding will be put towards research and development to ensure the startup is meeting the needs of Australian retailers, and consolidating its position in the market; the service currently operates across Sydney, Melbourne, Brisbane, Perth, and Adelaide.
“The growth we’re generating shows there’s hunger for more flexible, convenient delivery services among Aussie consumers. Investor interest during the capital raise exceeded expectations, and is particularly encouraging as we look to diversify our offering for retailers with new delivery options in 2018,” he said.
With Amazon launching in Australia to much fanfare last December – though launch prices were a far cry from the heavy discounts and deals many expected – Wang believes local retailers will continue to look to services like Go People in order to evolve and keep up.
Pointing to a survey of 1,000 Australian consumers Go People conducted, Wang said while almost 60 percent of respondents see Amazon as a threat to small businesses, 47 percent still plan to shop through the platform.
Furthermore, Wang said the survey found 41 percent of respondents believe delivery speed is the most important factor in deciding where to shop, compared to the 33 percent who said they want the ability to touch and feel the product.
“Retailers are realising they need to deliver the best possible purchasing experience for their customers to stay relevant,” Wang said.
According to NAB’s Online Retail Sales Index, Australian consumers spent around $24 billion online over the 12 months to November 2017 – the equivalent of 7.7 percent of spending at traditional bricks and mortar retailers.
There are a wealth of players in the local delivery space looking to capitalise; from Sherpa to Sendle, Shippit to Passel, Zoom2u and Australia Post itself, Go People’s competitors are formidable.
However, the range of retailers utilising new delivery services is also widening.
Among them is Coles, which in mid-December announced a partnership with task marketplace Airtasker to trial a delivery service across more than 60 Sydney stores.
Running as a 12 month trial, the service will allow shoppers to post their grocery list online and specify their desired delivery time, with an Airtasker then doing the shop and delivering the items. Shoppers and Airtaskers will also be able to chat one on one, allowing for shopping lists to be changed on the go.
Image: Wayne Wang. Source: Supplied.