Amazon invests in delivery start-up Deliveroo

Deliveroo has announced that Amazon is leading a new $575MM Series G shared funding round. This will make Amazon the largest investor in this round.
Amazon joins existing investors T Rowe Price, Fidelity Management and Research Company, and Greenoaks.
According to the company, this series of funding will bring customers the food they want whenever and wherever they want it, offering even more work for riders, and helping restaurants to grow their businesses by reaching new customers.
“Amazon has been an inspiration to me personally and to the company, and we look forward to working with such a customer-obsessed organisation. This is great news for the tech and restaurant sectors, and it will help to create jobs in all of the countries in which we operate,” Will Shu, founder and CEO of Deliveroo said.
“We’re impressed with Deliveroo’s approach, and their dedication to providing customers with an ever increasing selection of great restaurants along with convenient delivery options. Will and his team have built an innovative technology and service, and we’re excited to see what they do next,” Doug Gurr, Country Manager, Amazon UK said.
The new investment will contribute to:

  • Growing Deliveroo’s engineering team based in its London headquarters
  • Expanding Deliveroo’s delivery reach in order to continue offering its service to new customers
  • New innovations in the food sector, for example through delivery-only super kitchens “Editions”, as well as new formats that will help restaurants expand to new areas at a lower cost and lower risk, bringing more choice to local neighbourhood
  • Increased support for restaurant partners, and new tools to offer riders flexible and well-paid work

Read more about Deliveroo in Australia here.

CEVA Logistics signs three-year deal with LUSH

CEVA Logistics has announced it has been awarded a three-year deal to manage and deliver LUSH products to its stores across the UK and Ireland.
With this new agreement, CEVA will be responsible for moving the full range of items sold by LUSH.
As a further part of the value-added solution, CEVA’s shared user network will be utilised to perform final mile delivery to almost 80 stores and ensure full visibility of all products as they are moved.
“We are delighted to be working with LUSH Cosmetics as their official supply chain logistics provider. Our shared values mean LUSH will benefit from CEVA’s approach to minimising our combined impact on the environment through environmentally responsible logistics solutions. We will use our experience and expertise to deliver and add value to their supply chain operations and ensure a focus on continuous improvement,” Eddie Aston, CEVA’s UK, Ireland and Nordics Managing Director said.
“CEVA really stood out during the tender process with their dedication and hard work to deliver precisely what we need across our distribution network. We are delighted to be working with them,’ Dan Payne, LUSH’s Logistics Manager said.

Linfox opens warehouse in Vietnam

Linfox has opened a warehouse and distribution centre in Bac Ninh to service Hanoi and the northern Vietnam region.
The new facility is part of a strategic partnership with multinational fast-moving consumer goods company, Unilever.
The 100,000-square-metre site is one of the largest warehouse and distribution centres in northern Vietnam, offering 70,000 pallets positions, 60,000 square metres of ambient storage space and multi-tenancy.
The warehouse is equipped with cutting-edge technology such as a Microlistics system for warehouse management, and radio frequency (RF) devices to complete warehouse activities.
“The facility is strategically located at the VSIP Integrated Township and Industrial Park in Bac Ninh province, 20 kilometres from central Hanoi with connections to all major road systems, ” Linfox International Group CEO, said Greg Thomas.
“This will provide customers easy access to their inventory and will optimise distribution across the region.
“When designing the facility, we focused on incorporating many environmental features.
“The facility features motion sensored LED smart lighting to lower energy consumption and minimise the environmental footprint. We’ve also installed a rainwater harvesting system to reuse the rainwater and reduce the risk of stormwater flooding. This facility represents Linfox’s commitment to sustainability,” he said.
The new Bac Ninh facility is a significant investment for Linfox as the company expands into the Mekong region, with further investments planned in the near future. Operations will commence at the facility in March 2019.

E-commerce logistics market growth starting to slow

The latest report from Ti shows a market still expanding rapidly, but one in which competition, challenges and new entrants are raising questions over future development opportunities
The global e-commerce logistics market grew by 18.2% in 2018. Still a relatively nascent sector, e-commerce logistics growth is well above that seen in other logistics markets. Emerging markets are showing the fastest expansion, but even in developed economies, growth rates in nominal terms are usually in double-digits. Ti expects the global market to grow at an expected nominal 2018-2023 compound annual growth rate (CAGR) of 11.8%.
Ti’s latest figures suggest the cross-border component is a significant driver of this uplift. Cross-border e-commerce is bringing supply chain stakeholders into direct contact and challenging the status quo. But while gaining access to millions, if not billions, of new customers is an attractive proposition for e-commerce companies, targeting purchasers in foreign markets is not the easiest of strategies.
The report also examines the trend for offering more omni-channel retail solutions, likely to be a key requirement moving forward. This is largely driven by the purchasing behaviour of consumers, who demand a seamless experience enabled by the use of different channels to order, pay, collect and return products. They demand more delivery and returns options and leverage retailers against each other to get the best value for their money.
In addition, Global e-commerce Logistics 2019 examines e-fulfilment and last mile cost structures, and provides analysis of structural variations by geography and retail sector.
The report authors spoke extensively with senior management and leaders at the largest e-fulfilment and last mile providers globally, as well as with niche e-commerce logistics providers. A common theme was the threat posed by global retail platforms managing their own logistics requirements whilst also offering services to third parties.
The entry of players such as Amazon, Alibaba and JD.com is forcing many to consider what the future of e-commerce logistics might look like. The report’s lead author, Viki Keckarovska, senior research analyst at Ti, said: “While some would say that Europe’s legacy infrastructure and market structures are unfit for the new e-retail world, it could equally be argued that Europe boasts probably the most efficient logistics and transport sector in the world. Ti’s discussions with logistics executives and leaders in the market suggest Europe’s legacy infrastructure is seen as a hindrance to the development of efficient e-retail distribution networks, with facilities in the ‘wrong’ place and markets which were more focused on B2B rather than B2C deliveries.”

Electric trucks are the way to go: ALC

The Australian Logistics Council (ALC) is disappointed that the final report of the Senate Select Committee on Electric Vehicles has missed clear opportunities to boost the uptake of EV in the freight logistics sector.
“There is clearly a willingness within this industry to move towards greater use of EV in freight delivery. It is disappointing that the committee has not supported that positive attitude by explicitly addressing freight vehicles in its recommendations to the government,” said ALC CEO Kirk Coningham.
“It is especially perplexing that the committee recommends establishing national EV targets for light passenger vehicles, light commercial vehicles and metropolitan buses – but is silent on establishing a similar target for heavy vehicles.
“It is similarly disappointing that the report did not take the opportunity to recommend a review of the Australian Design Rules, to that they can better accommodate the unique size and shape of some electric freight vehicles.
“ALC is pleased that the report does make recommendations on some of the issues raised in our submission, including the need to facilitate the rollout of charging infrastructure and ensure the energy network is able to sustain a reliable supply of energy to power EV.
“However on the whole, these recommendations fall well short of the type of action that is needed to hasten the uptake of EV in the freight logistics sector.
“One opportunity that was clearly missed was a recommendation to establish a Low Emission Vehicle Contestable Fund, similar to one already operating in New Zealand.
“Indeed, the report specifically refers to the New Zealand fund in its commentary and notes its benefits – but does not follow through by recommending a similar initiative for Australia.
“Just last week, the New Zealand Government announced a further round of projects to be supported though its fund, including projects specifically focused on the freight sector designed to showcase the capabilities of long-haul heavy electric vehicles.
“Similar initiatives will need to be adopted in an Australian context if freight logistics operators are to be encouraged to incorporate EVs into their own operations. This is something ALC will be pursing in its pre-Budget submission and in ongoing discussions with the Federal Government.
“The ALC’s Electric Vehicles Working Group will continue to pursue these matters with all political parties in the lead up to this year’s federal election,” Mr Coningham said.

Australia Post to operate largest electric vehicle fleet

A new order for an additional 1,000 three-wheeled electric delivery vehicles (eDV) by Australia Post is set to make it the nation’s largest electric vehicle fleet operator.
Australia Post group chief operating officer Bob Black said the 1,000 eDV boost its existing fleet of electric postie vehicles – including electric pushbikes – and creates a range of benefits for posties, customers and the environment.
“We are proud to soon be operating Australia’s largest fleet of electric vehicles, and hope this will set the standard across Australia,” Mr Black said.
“With parcel volumes growing – on average, close to 10 per cent each year for the last three years – and letter volumes declining, we’re always looking for ways to ensure our posties continue to play an important and sustainable role in the community.
“These vehicles offer additional carrying capacity, so our posties can deliver more parcels than ever before directly to the customer’s door – and can perform additional functions, such as collecting mail from street posting boxes.”
Along with delivery benefits, Mr Black said the electric vehicles also offer added safety and environmental protections.
“The eDV are safer than the traditional motorcycle. They are easier to see on the road, more stable, have increased rider protection and lower on-road speeds, all of which reduce a postie’s exposure to incidents and serious accidents.
“We started trialling eDV in 2017 and we’ve since deployed them in all states. We have worked closely with our posties to make improvements along the way.
“Our posties love the eDV because they demonstrate our commitment to providing safer and more sustainable employment into the future, given consumers are sending fewer letters and relying more and more on their postie to deliver their parcels.
“They will also help us achieve our commitment of reducing our carbon emissions by 25 per cent by 2020.”
Deployment of the additional 1,000 vehicles is expected to start from June across all states.
Along with the additional 1,000 eDV Australia Post will also roll out an additional 4,000 electric pushbikes, bringing its total to 5,980 over the next three years.
 

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