Australian crowdsourced courier service, Go People, has raised a further $3 million in its latest funding round as it looks to capitalise on the market’s thirst for online shopping and on-demand deliveries.
The company grew its monthly deliveries by 600% over the past 12 months, following increased demand as retailers looked to match or beat Amazon’s delivery options. Wayne Wang, founder and CEO of Go People, believes the capital raise and the recent surge in demand position the company strongly moving forward.
“The growth we’re generating shows there’s hunger for more flexible, convenient delivery services among Aussie consumers. Investor interest during the capital raise exceeded expectations, and is particularly encouraging as we look to diversify our offering for retailers with new delivery options in 2018,” said Wang.
“Funds raised from this round will help Go People to further consolidate the market nationally, investing in research and development to meet the needs of Australian retailers. One such result of our research is the GoSHIFT service, which helps businesses make express deliveries to consumers,” added Wang.
How Go People is taking on Amazon
With retail giant, Amazon now operating on Australian shores, Wang believes the company is in the best possible position to help smaller retailers fight back by providing fast and affordable 3 hour delivery services.
Surveying 1,000 consumers across the country, the company’s research revealed that despite more than half (59%) of Aussies seeing Amazon as a threat to small businesses, a similar amount (47%) still plan to shop there.
“Local retailers are already feeling the ‘Amazon effect’ with the market’s disruption pushing them to evolve.
“Retailers are realising they need to deliver the best possible purchasing experience for their customers to stay relevant. Our research shows, when Aussie consumers decide where to shop, they now place more importance on delivery speed (41%), than the ability to actually touch and feel the product (33%),” noted Wang.
With the NAB reporting online spending is growing five times faster than traditional retail spending, it’s clear Australian consumers are letting their wallets do the talking. For local retailers, the supposed brick and mortar advantage of being able to physically experience a product, before purchasing, is less of an advantage than it was.
“We’re becoming a nation of on-demand shoppers, with one in two (50%) noting the importance of same-day delivery when deciding where they shop. Local retailers need to ensure they delight their customers throughout the entire purchasing experience to remain competitive,” added Wang.