Australian Business Growth Fund takes 30% stake in Hubbed

Australian pick-up/drop off (PUDO) technology firm Hubbed has had an AUD $12m (£6.86 million) investment from Australian government backed Australian Business Growth Fund (ABGF). This amounts to a 30% stake in the company and ABGF gets a seat at the Hubbed board.

Hubbed is a national PUDO network with more than 2000 PUDO locations across Australia. Shoppers can collect or drop off parcels at convenience stores such as BP service stations and 7-Eleven at their convenience.

Hubbed’s technology integrates with delivery companies, aggregators, marketplaces and other e-commerce platforms to allow PUDO as an option in final mile delivery. The company’s clients include DHL, FedEx, TNT, Sendle and Couriers Please.

For carriers this reduces the amount of missed deliveries and can reduce the carbon intensity of each parcel. Meanwhile customers find it a convenient alternative to waiting at home for a parcel.

ABGF chief executive Anthony Healy said of the investment,
“They are really addressing a key pain point when it comes to last-mile logistics in the area of parcel delivery,” he said.

“You put all that together with a huge addressable market, the large and growing new commerce space and the options that retailers have today are limited. Australia Post is a huge player, but we can see there was an opportunity here and the model that Hubbed got to market is really innovative.”

Hubbed founder David McLean said, “Everybody wants fast delivery, but they want fast at the cost of slow. You cannot have fast at the cost of slow,” he said.

“Therefore, you have to create different versions of fast, so you can actually get a parcel to a collection point a lot faster than you can get a parcel delivered to home at the right cost differential.”

More:   Just Eat share value collapses by 19% as investors cut and run