Australia Post has decided to secure full ownership of Aramex Global Solutions (AGS), which provides end-to-end cross-border logistics solutions to a portfolio of iconic global e-commerce merchants.
Australia Post has reached in-principle agreement to purchase from its joint venture partner Aramex PJSC the 60% of AGS it does not already own for approximately US$20 million.
AGS has grown strongly since it was established by Australia Post and global express delivery and logistics company Aramex two years ago, with revenue up more than 60% since 2016 to approximately A$138 million* in 2018. Australia Post’s exclusive delivery of parcels for AGS in FY18 generated A$40 million of revenue.
AGS enables Australian consumers to shop online globally, connecting international retailers directly with Australia Post’s last-mile delivery and customs clearance capabilities. In addition to delivering significant parcel volumes inbound to Australia, AGS has an established presence in key global e-commerce trade lanes, including Asia, the UK, Europe and the US, providing a valuable platform for continued expansion.
Executive general manager international services Annette Carey said: “As a wholly-owned subsidiary of Australia Post, AGS provides an established platform to accelerate our international growth strategy.
“Combining our postal capabilities with AGS’s bespoke e-commerce capabilities enables Australia Post to engage directly with international retailers, providing unique customer service to capture strong growth in cross-border e-commerce markets.
“Today’s agreement with Aramex reflects changes to the strategic direction of both organisations, including Australia Post’s commitment to positioning itself as a global provider of cross-border e-commerce.”
The strength of cross-border e-commerce markets and a highly regarded management team, led by CEO Nabil Zaghloul have underpinned the growth of AGS, which is now handling more than two million international parcels a month.
“At AGS, we’re very excited to benefit from Australia Post’s culture, long-term vision and ongoing investment” said Mr Zaghloul. “Through partnerships with China Post and major Asian e-commerce marketplaces, we can leverage our platform into new markets.”
Transaction completion is expected to occur in the coming days. Australia Post has plans to rename and rebrand AGS to reflect the change in ownership in the near future.
* Reflective of revenue generated in the eleven months ended 30 November 2018 and an estimated revenue for December. Full year revenue is expected to be US$99m or c.A$138m. (AUD/USD = 0.7194 at 18 Dec 2018).
Delivery network Fastway Couriers has celebrated reaching 25 years of operation in Australia. The milestone was recognised at the company’s annual convention, held this year in Uluru, Northern Territory.
“Fastway Couriers is delighted to be celebrating its 25-year anniversary in Australia, and what better place to celebrate than Australia’s iconic Uluru?” said Peter Lipinski, CEO, Fastway Couriers Australia. “Our annual conference is a time to reflect on the success of the past year, and this year we are so pleased to be celebrating a successful 25 years of distribution here in Australia.”
Fastway Couriers was established in New Zealand in 1983, launched in Australia in 1993, and was named Australia’s fastest growing private company in 1998 by BRW Magazine. The company now has over 800 franchisees now across Australia, of a total over 1,500, and and was purchased by international courier and logistics company Aramex in January 2016.
“The transport and delivery industry has changed dramatically over the past 25 years,” said Lipinski. “The first Fastway van in Australia distributed in a world pre-smartphone technology and internet, in a market made up predominately of business-to-business customers.
“The rise of online shopping in the past five years has completely transformed our industry. The rapidly growing appetite of Australian consumers for online shopping and the expectation of round-the-clock convenience has underpinned the development of a number of innovative new technologies to help future proof our business and franchisees and delight every customer at the door.”
The Sydney Opera House’s what3words address is tiny.loses.tree.
Express delivery company Aramex recently ran a study in Dubai to measure the efficiency of deliveries to regular street addresses versus 3-word addresses provided by the addressing system what3words. The study found that, over 100 deliveries, using 3-word addresses was 42% faster and reduced the total distance travelled by delivery drivers by 22%.
what3words is a global addressing system that has divided the world into 3m x 3m squares, each with a unique address made up of 3 words. The 3-word address ///index.home.raft, for example, identifies the exact front entrance of the what3words office in London. 3-word addresses are accurate to 3m x 3m, giving every front door, mall entrance and delivery point its own unique address.
“We’re committed to using innovative technologies to provide better customer service, improve efficiency of current deliveries and to drive growth in poorly addressed areas, which is why we’ve integrated what3words into Aramex core systems,” said COO of Aramex Iyad Kamal.
The study took place in two well-addressed areas of Dubai: Al Khawaneej and Al Muhaisnah. Two teams of Aramex drivers, with two drivers per team, each delivered 100 packages to the same 100 locations. One team used street addresses, the other used 3-word addresses along with route optimisation software to generate the most efficient route.
The drivers who used street addresses spent 7 hours and 49 minutes on the road, drove a total distance of 255 km, and had to make 25 phone calls asking for directions. The drivers who used 3-word addresses drove for 4 hours and 28 minutes, covered a distance of 198 km, and made no phone calls to customers. Over 100 deliveries, the 3-word address drivers were 42% faster than the street address drivers. There was a 22% reduction in total distance travelled because what3words enables optimised route navigation.
“The business benefits for Aramex and our clients are undeniable,” said Iyad Kamal. “This offers a much better retail and delivery experience for the retailer and ultimately the end customer.”
With e-commerce rapidly growing and customer expectations rising in a very competitive market, what3words can help businesses stay ahead of the competition. Online retailers can simply add a 3-word address field to their checkout pages with various plugins including Shopify, Magento, Opencart and Woocommerce. what3words provides retailers with simple, multilingual communication assets, imagery and films to ensure their customers understand how to easily discover and use their 3-word address.
“what3words’ format is global, universal, and 3-word addresses are available in over 14 languages,” said Chris Sheldrick, CEO and co-founder of what3words. “The system is being used to meet friends easily and to get takeaway food delivered faster. It’s used by music festival organisers, emergency responders, and next year you will be able to use what3words for navigation in your Mercedes-Benz. Our partnership with Aramex means it can improve delivery times in all the cities in which it operates, as well as deliver to a vast new market of customers who have never had an address before.”
Tonga has adopted a new postal addressing system to improve national infrastructure. The system, what3words, will enable Tonga Post to better serve its 36 inhabited island
what3words is a global grid of 3m x 3m squares where each square has been pre-allocated a fixed and unique 3 word address.
The Kingdom of Tonga is the first nation in the region, and the fourth in the world, to adopt the three-word address system. Thirty-six of Tonga’s 170 islands are inhabited, with a population of approximately 103,000 citizens. With only a few named streets on a handful of islands, delivering mail is a constant struggle for Tonga Post, the nation’s official postal service.
Until recently, home delivery was restricted to express mail in the city of Nuku’alofa, the capital of the Kingdom. Any other mail would be delivered to centralised PO Boxes, with the recipient responsible for collection, resulting in high volumes of undelivered mail, taking up space and incurring extra costs for Tonga Post.
By using what3words, every location in the Kingdom of Tonga now has an instant address, which Tonga Post hopes will help to unlock the region’s economic growth and social development.
According to the company, three-word addresses will ensure packages or deliveries from the extensive Tongan diaspora make it home, and the system also enables companies to generate revenue from handling more inbound international parcels, as well as from e-commerce from Hong Kong, China and Singapore.
“The volume of international mail we have to deal with has increased dramatically in recent years and consumption of e-commerce is rapidly rising across the islands,” said Tonga Post CEO, Siosifa Pomana. “It’s essential we have the delivery infrastructure that can meet this demand, from customers in cities to those on the smallest islands. what3words’ system has already addressed everywhere in Tonga so we can roll out our service immediately.”
According to what3words, the system is used by individuals, delivery companies, navigation tools, governments, logistics firms, travel guides and NGOs. It is more precise than traditional addresses, simpler than descriptions, and easier to communicate and remember than long strings of GPS coordinates. In addition, it works offline without a data connection, ensuring it can be used everywhere.
The partnership was finalised during a ‘Addressing the Future’ forum held in Nuku’alofa 24–26 January 2017. The business forum looked at ways to further develop e-commerce across the South Pacific and was attended by postal services from The Cook Islands, Fiji, Solomon Islands, Tonga, Tuvalu and Vanuatu as well as Australia and New Zealand.