News & Analysis

Australia Post partners with delivery startup Shippit as it furthers its push into ecommerce

- March 30, 2016 2 MIN READ


Australia Post has been widely criticised for being slow to react to huge changes in the postal industry space, with the company seemingly looking on as new courier and delivery startups popped up. However, Australia Post has recently stepped up its game, make up for lost ground by forming strategic alliances with big players in the startup ecosystem and looking at small business, partnering with Data61 and the Victorian Government in the last month alone.

As it looks to push further into parcel delivery and drive growth across the ecommerce and digital markets, Australia Post has now strategically aligned with delivery startup Shippit.com. Since launch in 2015, Shippit has raised $500,000 in seed funding and stated that it has seen 50 percent month-on-month growth.

The partnership between the two companies means Shippit’s customers will now have access to 90 percent of the business-to-consumer delivery market that is currently held by Australia Post; this includes the distribution network with both standard and express post parcel delivery services.

Robert Hango-Zada, cofounder of Shippit said, “There is broad alignment between the vision we have for the delivery industry and what Australia Post are looking to achieve. By developing a solution for a leading Australian omni-channel retailer, it was clear that the technology we had developed could benefit more businesses with the right logistics partners. Striking an agreement was a logical step in helping us both scale the impact of this solution.”

Taking advantage of Australia Post’s smart delivery management technology system, Shippit said it will be able to deliver for retailers and customers with greater transparency. Shippit will now be able to offer customers features including GPS tracking notifications, tapping into the sort of transparency that is now expected among consumers thanks to services like Uber.

Australia Post’s management system will also give users access to a single-link tracking experience, with email and SMS notifications to alert users on the arrival, time, and place of their orders.

Research shows that poor customer engagement and experience, especially in the delivery space, can lead to a steep drops in customer traction and acquisition. Sixty-six percent of customers won’t buy from a retailer again after a bad experience.

Smart technology management systems harnessed by Australia Post means retailers can stream, book and tracking orders they’ve sent, which enables business owners to focus on business development and operations, rather than on logistics and complaints. On the other hand recipients can look forward to knowing the exact time and location of their parcels and manage the collection of their orders, reducing the need to track down packages after work or on weekends.

Australia Post is now in the position where it can work off an already well established infrastructure and tap into new startups and innovations coming into the delivery and communication space. Slowly but surely Australia Post is transitioning into the ecommerce market and integrating its smart systems with startups like Shippit will help accelerate the company’s digital quality and viability, helping it along in a space that was once close to leaving it behind.

Hango-Zada said the partnership is also a big opportunity for Shippit, with the integration of Australia Post’s systems with Shippit’s services giving the startup access to over 11,000 delivery vehicles Australia wide.

“With seven out of 10 online purchases being delivered by Australia Post, this is a terrific opportunity for Shippit’s technology to help reduce friction and provide a better experience for local retailers and their customers.”