GreenTec invests into Nigerian Logistics solution Parcel-it
Lagos (Nigeria) and Frankfurt (Germany), October 2018
GreenTec is very pleased to announce our investment into Nigeria based Parcel-it. Parcel-it is an alumnus of the Tony Elumelu Entrepreneurship Program that has developed an on-demand logistics aimed at targeting the more than 20,000 daily delivery requests around Lagos, Nigeria representing a US $13 Billion annual market.
The expansion of the middle-class in Nigeria has led to the development of an active and thriving online-retail market servicing a growing number of online shoppers. This thriving e-commerce is limited only by a dearth of convenient on-demand logistics solutions, with the average delivery taking 3 days or longer. Parcel-it’s on-demand solution addresses this market gap, through its innovative logistics app. The app is designed to be an open marketplace for dispatching riders and is available as a free downloadable app from the Google Play Store or as an API to integrate dispatching with e-commerce providers.
Parcel-it addresses common pain-points such as security through thorough screening and training of its riders, GPS tracking, and providing insurance for the packages in-transit. Delivery riders registered with the app are trained in customer service and platform usage to provide courteous and on-time deliveries. Riders are provided a GPS based location device for their vehicles, which tracks the deliveries in transit and providing real-time information on the package’s journey. Registered riders are assigned deliveries by proximity to the pick-up location. The company aggregates courier companies to ensure a steady supply of riders. The open market place approach allows for expedient dispatch assignments to available riders. Riders register with the platform as independent contractors, enabling them to earn additional revenue in their free time, similar to Uber’s model. The company also applies a “dual-pricing” strategy that allows for premium pricing on after-hours deliveries or at times of high demand. As many of Parcel-it’s customers are actors on Nigeria’s large informal market, the company is developing a risk-scoring solution to facilitate loyal customers’ transaction capacities with short-term financing.
The company launched its app in June 2017 in Lagos and has registered hundreds of users to the app and processed more than 200 delivery transactions. GreenTec will work closely with Parcel-IT to incorporate a robust fintech solution to help further the platform’s growth.