Parcel courier industry disrupter People Post aka the ‘Uber of couriers’ is ready for the next phase of its expansion after a significantly oversubscribed capital raising.
After targeting $1 million, the company has successfully raised $1.25 million through Greenwich Capital Partners. Greenwich Capital Partners has acted as Corporate Advisor on the transaction.
“We have been quick to wrap up our first corporate deal,” says Managing Director Jonathan Warrand. “This also delivers for our shareholders by securing a 5% interest in an exciting and innovative business of the future.”
“This capital raising is a key milestone as we expand our business to secure more corporate and e-commerce clients and expand our runner network across Australian cities. Our technology is proven and now we are well positioned to grow,” says CEO and co-founder Wayne Wang.
The company has its headquarters in Sydney but supports an international team working out of Australia and China. It has more than 7,500 registered runners, delivering in excess of 26,000 parcels in the past twelve months.
What exactly does People Post do?
People Post harnesses the power of an online platform and smart phone apps to crowd-source delivery drivers and track parcel movements in real time. Security bonds and user reviews underpin a system of safe delivery.
People Post has flipped the industry on its head in a way that it connects anyone wanting to send a parcel with a nearby registered “runner” around the clock, seven days a week.
Gone are the days of your packages getting lost in the heap at the centralised hub of the traditional courier. The new model does away with the need for these sorting depots.
A key competitive advantage is its “grouping” algorithm, which ensures efficient parcel movements. “Today, People Post is not only cheaper, faster, and easier for sending parcels, it is also a great way for people to earn additional income as a runner,” says Wang.
Having entered the market in 2014, People Post is operating in a fragmented industry worth an estimated $5.4 billion annually. It had a first-mover advantage over Uber, which was still at just the trial stage in the US.
How did this idea spring to life?
The business sprang from the personal frustration of founder and CEO Wayne Wang over the cost and slow response times of traditional couriers.
With many years of web and app development experience behind him, he is now at the head of a disruptive challenger in the parcel courier industry.
He was previously a director of NWAYS. Prior to that he was a director of website and software developer Captainsoft, having launched his career at website developer Alpha Salmon. He holds a Bachelor of Computer Science from Macquarie University.