|Current Share Price||$0.24|
|52 Week High||$0.59|
|52 Week Low||$0.01|
|Shares Outstanding (MM)||67.9|
|Warrants Outstanding (MM)||20.1|
|Options Outstanding (MM)||4.1|
|Fully Diluted (MM)||81.8|
|Market Cap (MM)||$16.3|
ParcelPal (CSE: PKG) is a technology Startup company who aims to disrupt the delivery industry through its innovative logistics app. Customers shop online and order delivery via ParcelPal and “Drivers” pick up the parcel and delivery it to the customer. The main difference is that the drivers are contractors who use their own mode of transport to delivery the package (walking, bike or car). Customers can receive their purchased goods within an hour at an affordable rate compared to a standard shipping rates. This on demand ecosystem has grown to over 300 restaurants, leading retailers, medical marijuana dispensaries and liquor stores in their launch region of Vancouver.
They have been focused on running their operation lean and fine-tuning their platform and apps and have been generating traction organically versus promotion. They have launched their platform across Vancouver and have recently expanded their coverage throughout the Lower Mainland of BC. A planned launch was expected for the GTA but ParcelPal remain focused on gaining significant market traction in a certain geographic region before spreading themselves too thin. They were recently put under quite a stress test for their platform when they partnered with Amazon delivery services in the Vancouver region. They have knocked it out of the park and achieved Gold Status as an Amazon Fulfillment Provider and have become one of the fastest growing providers for Amazon in BC.
This is no small feat as that means they have successfully delivered over 500,000 packages for Amazon during the short trial period with a 98.8% first delivery success rate and only 1.5% returns. Their delivery system is fast, affordable and has less defects per delivery than typical services. ParcelPal generated $400,000 in revenue alone last quarter from their partnership with Amazon in just the Vancouver region. They have expanded their region toward the Fraser Valley in BC and are aiming at expanding their Amazon footprint from the “Core” (same day) and into the “Prime” (2-day delivery options).
The management team is going to keep delivering on 4 verticals core markets: legal cannabis, casual and fast food, grocery and retail, and with several companies (COSTCO Canada, Walmart etc.) exploring same day delivery options, ParcelPal has the ability to expand its offerings to an even large number of retailers.
ParcelPal’s technology automates and facilitates the entire ordering and delivery process. This advanced technology gives the power back to the merchant for facilitating fulfilment of orders and managing their last mile logistics. ParcelPal’s ecosystem gains merchant’s new customers by driving consumer traffic to their store which helps retain and gain new customers. This technology essentially turns an offline business (brick and mortar store) instantly into an online eCommerce store without the hassle and expense of traditional eCommerce channels.
The biggest gain with on-demand delivery is that it blurs the difference in convenience between online and offline shopping. Customers can enjoy the flexibility and concessional pricing of online shopping and still have immediate product access that is native to offline shopping. On-Demand delivery is the next revolution in eCommerce that will reap in benefits for both retailers and merchants as well as their many customers. Combined with efficacy of ParcelPal, On-Demand delivery is a fuss-free affair for both consumers and merchants.
Kelly Abbott– President and CEO – Under his leadership ParcelPal has experienced explosive growth and adoption in the Vancouver region with plans on future market expansion.
Devon Brown – Director and CFO – 12 years of Corporate Finance and Capital Markets experience in the Cannabis, Logistics and Gaming Industries. He has an extensive background in business transformation and strategy, and a deep knowledge of the technology industry.
Cody Halovich – CTO – Veteran of multiple tech start-ups, with over 20 years of development experience. His was pivotal in helping Hootsuite and PayByPhone expand their technology base and help foster their growth.
With over 300 businesses using ParcelPal in the Vancouver region and thousands of users adopting their platform, they are expanding at a rapid pace but seemed focused on delivering excellent customer service and having a solid growth in users (+1000 each month), drivers (+100 drivers) and revenues ($45,000-65,000 a week currently). With future expansion into new region and new verticals, the company is also poised for growth in its share price.
ParcelPal had strong sales growth and adopting in the launch region of Vancouver, with new regions and services they aim to reach $2.5-$4 Million in revenue for 2018. They seem like they want to ensure that they have the business model and all the kinks out before they launch into other regions. With their success in Vancouver there is little in their way for mass adoption as they follow their vision to be the Uber of Things.
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