- 27 November 2015
- Transport / Logistics Services
Menzies Distribution has signalled its serious interest in the e-commerce delivery market with another acquisition of an e-commerce delivery company. The company has bought Oban Express, a small courier in the Western Highlands that the company claims will “transform e-commerce in remote parts of Scotland”.
Scotland based Menzies Distribution, which issued a profits warning last week, has been working hard to buy into the e-commerce delivery market in an attempt to take advantage of the huge forecast growth in the sector as consumers move away from the high street shop and to online outlets instead. For those living in remote areas such as the Highlands it is far easier to buy online than spend two hours driving to a large urban centre to make the same purchases. As such the acquisition of Oban Express is tapping into a market that could be vigorously exploited to the benefit of consumers and e-tailers alike.
Oban Express has a fleet of 45 vans working out of Oban and Glasgow. The directors of the company will remain with Menzies and play an active role in bringing the two businesses together.
MD of Menzies Distribution Forsyth Black said of the move, “The acquisition of Oban Express brings even more expertise to the Menzies Distribution portfolio and deepens our service offer in Scotland. We have now strengthened the geographical reach of our specialist parcel consolidation service, which dramatically cuts the cost of delivery to isolated areas for national carriers.”
Recently, Apex Insight reported a deal between Menzies and B2C Europe, an EU wide delivery company. Menzies lorries will take packages from retailers and deliver them to processing centres to be sorted and delivered to customers. This could help the distribution and logistics company significantly in the coming years, and help it play a role in the e-commerce sector.