Government-backed fund takes stake in last-mile delivery tech start-up
ABGF Managing Director Anthony Healy was drawn to Hubbed’s integrated technology and management which offered an innovative solution to fill a gap in the e-commerce market.
“They’re really tackling the key last-mile logistics problem in parcel delivery,” he said.
“You put all of that together with a huge addressable market, the new large and growing retail space and the options retailers have today are limited. Australia Post is a huge player, but we can see there was an opportunity here and the model put on the market by Hubbed is really innovative.
Hubbed founder David McLean said The Australian Financial Review the new funds would allow it to expand collection points to 3,000 across the country, including more regional locations.
“Everyone wants fast delivery, but they want fast at the expense of slow. You can’t be fast at the expense of slow,” he said.
“Therefore, you need to create different versions of fast, so that you can actually get a package to a collection point much faster than you can have a package delivered to your doorstep at the correct cost differential.”
According to Pitney Bowes Parcel Shipping Index, Last year, Australia passed the billion mark for business-to-consumer parcel delivery.
The boom in online shopping has created a larger delivery market. Last-mile home delivery is expensive and inefficient, so carriers are exploring options to reduce the cost of delivery and increase capacity, while retailers focus on providing more service and returning customers .
Mr McLean, who spent 14 years at Microsoft selling products such as Windows and X Box before going it alone in 2014, said delivery through the Hubbed network was also more environmentally friendly as trucks passed less time on the road to deliver to a collection. point to a house. This saved about 0.47 kilograms of carbon emissions, according to the Carbon Reduction Institute of Australia,
Five years later, Hubbed has expanded into New Zealand. Further expansion plans are planned for this year in the Middle East, the United Kingdom and the United States.
National Australia Bank is a founding member of ABGF.
Andrew Irvine, NAB Group Director for Corporates and Private Banking, said the fund aimed to help SMEs access long-term equity capital while retaining control of their business.
“Initiatives like this are a powerful way to support entrepreneurs,” he said.
ABGF has $540 million in funds under management and just under $60 million has been deployed across a range of investments in lithium-ion batteries, healthcare and dental care, and software as a service. Hubbed is its fifth investment.