Shippit to expand into New Zealand as it edges closer to profitability

 Shippit plans to expand its courier aggregator platform further beyond our shores as it closes in on a key profitability milestone.

William On and Rob Hango-Zada are taking Shippit to New Zealand. Picture: Nikki Short

The $300m e-commerce delivery platform rival Shippit will expand into New Zealand as it looks to broaden its footprint across the region months out from becoming profitable.

The company, which powers hundreds of millions of deliveries for prominent retailers such as Kmart, Chemist Warehouse and Coles, says it will also enhance the delivery experience for retailers and consumers alike, demonstrating resilience and growth in a rocky retail landscape.

Shippit is a courier aggregator, which automatically selects the fastest and cheapest courier for every order. Providers include Australia Post, Aramex and Couriers Please.

Its New Zealand operation will be led by head of market development Sofia Newcombe supported by a team of 30 – across research and development, product, shipping operations, customer success and sales – servicing the country.

Shippit co-founder and co-chief executive William On told The Australian that expanding into New Zealand was a logical next step for the start-up as it looked to become a truly ­Australia-New Zealand platform.

“Like Australia, New Zealand is an entrepreneurial, proud and innovative retail market. Our arrival comes at a pivotal time, though, as retailers prepare to compete against foreign retail ­entrants,” he said.

“Delivery has a genuinely causal effect on loyalty, and through our platform, we have the opportunity to power the next generation of retailing here just as we have done in Australia over the last decade.”

Shippit will enter New Zealand with established partnerships with local retail giants including Spotlight, Freedom, Harvey Norman, Accent Group, Macpac and Kathmandu.

Mr On said that the timing was right to enter New Zealand, with the country’s retail market projected to generate $8.44bn in revenue by the end of 2024.

“With the influx of inter­national retailers like Amazon, local businesses need robust delivery solutions to maintain customer loyalty. Shippit’s platform addresses this by offering multiple delivery options, supporting bulky deliveries, and ensuring extensive coverage across both North and South islands,” he said.

Expansion comes as Shippit continues to track towards its first profit slated to be achieved by Oct­ober.

Shippit has seen group revenue lift 30 per cent in the past year with order volumes up 26 per cent despite consumers pulling back on retail spending because of cost-of-living pressures.

Shippit offers retailers access to a comprehensive carrier network that covers more than 95 per cent of the country’s parcel volume.

The move should allow businesses – from national enterprises to family-run stores – to leverage discounted rates and ­diverse delivery options.

Shippit has a partnership with Australia Post, which allows it to harness the power of more than 11,000 ­delivery vehicles Australia-wide, making it one of Australia’s largest delivery platforms.

Retail trade has slowed significantly in the past year as rapid interest rate rises coupled with sticky inflation erode many household budgets.

Economists forecast that retail trade data for May to show growth of 0.3 per cent in the month compared to 0.1 per cent in April, when the Australian ­Bureau of Statistics releases it on Wednesday.

Originally published as Shippit to expand into New Zealand as it edges closer to profitability