News & Analysis

On-demand courier startup Zoom2u raises $1.85 million to expand across Australia into regional areas

- May 17, 2016 2 MIN READ

On-demand courier startup Zoom2u has raised $1.85 million from existing investors Tony Gandel and Anthony Klok and new investor Mike Rosenbaum to help fund its expansion around Australia.

Launched in 2014, the startup raised $850,000 in seed funding from Gandel of Gandel Invest and Klok, non-executive director of Temando, last June. It now reports it is serving over 14,000 customers across Sydney, Melbourne, and Brisbane.

The fresh funding will go towards expanding the startup’s network across Australia, with Zoom2u eager to go beyond the metro cities to begin serving regional areas; to do this the startup will be hiring new staff across its operations, development, sales, and marketing teams.

The focus is on business customers, with founder Steve Orenstein reiterating the importance for business owners of having a reliable delivery service.

“Having our own network of couriers, rather than re-packaging existing services, means we can deliver a hassle-free and more efficient service,” he said.

Similarly, new investor Mike Rosenbaum, founder of Deals Direct and now CEO of Spacer, said his time in ecommerce highlighted the importance of the service.

“My experience running Deals Direct certainly taught me that logistics companies are the face of ecommerce companies today. As an online retailer, there is no point investing hundreds of thousands of dollars on a great website experience enabling your customers to buy from you, if the delivery lets you down,” he said.

The funding comes just two months after Zoom2u made its first acquisition, buying up Sydney-based shipping startup and existing collaborator Fetchh for an undisclosed amount. The Fetchh service was absorbed into Zoom2u, with Orenstein saying the acquisition enabled the startup to gain access to a wider business customer base.

Fetchh allowed users to enter their shipping details on its app, with Fetchh then picking the user’s items up from their door within 30 minutes and then packaging and shipping them from the Fetchh warehouse, with shipping outsourced to partner carriers.

Prior to the acquisition Zoom2u had announced a partnership with food delivery startup Menulog, helping restaurants without their own delivery drivers launch a delivery service. Orenstein explained at the time that the partnership came about as a result of the startup fielding enquiries from restaurants, and said it has since seen “substantial growth” with both restaurants and customers enjoying the service.

The startup also partnered with Greyhound Australia late last year to provide customers with a cheaper next day delivery option around Australia, expanding its offering from its three hour and same day services.