Why We Invested in Zoomo: Delivering the Optimal Vehicle for Last Mile Delivery
By Brian Walsh, Head, WIND Ventures
E-commerce has grown significantly over the past decade, only accelerating throughout the pandemic. In Latin America alone, we have seen a healthy 16% annual revenue growth rate since 2018. As part of e-commerce’s growth, the delivery speed and reliability of online orders has been in focus because it defines the customer experience as good or poor. As a consequence, more investments have been made into Last Mile Delivery (LMD) capabilities to continually improve e-commerce deliveries. In Latin America, LMD delivery revenue has significantly out-paced e-commerce growth at >50% annually as large e-commerce brands invest in it more and more.
For LMD, the vehicle of choice for delivery drivers around the world is the traditional bicycle. In fact, 63% more delivery drivers use a bicycle versus a moped or car. The reasoning behind this choice tends to be three things: 1) a bicycle is low-cost; 2) a bicycle is easy to use and does not require special access or parking; and 3) there are no licensing requirements or fees for using a bicycle. In short, it is the most practical and easiest-to-use vehicle for getting a package delivered to a residential address in an urban area.
Bikes, however, are not perfect. For one, bicycles require physical endurance. Secondly, bicycles typically require a lot of maintenance. Both of these result in a limited delivery range, slow delivery times and unpredictable downtime. All of this limits the delivery driver’s income potential.
Enter Zoomo, a faster more efficient alternative to the traditional bike
A new option has emerged designed by a global startup called Zoomo that keeps the benefits of the bicycle for LMD work while also addressing the shortcomings. In its simplest form, it is an electric bike (e-bike) that compares favorably against a car, moped or traditional bicycle in terms of value, range, speed, and accessibility. E-bikes are also green and suitable for any rider. It really is the ‘perfect’ vehicle for LMD work in urban areas, allowing any delivery driver to better maximize his or her daily income potential.
But Zoomo has gone even further than this, which is why we participated in their most recent funding round. Zoomo designed its e-bikes from the ground up specifically for the LMD worker. Unlike micro-mobility options, Zoomo’s e-bikes are very durable and unlike other e-bike manufacturers, Zoomo’s e-bikes come with theft prevention, GPS tracking and analytics. Further, Zoomo has developed a business model that enhances the value to LMD workers even more. Zoomo offers its e-bikes as a subscription that includes everything needed to get started including a maintenance service network for every city that it launches. In short, it is not only the perfect LMD vehicle, it is also the easiest to start using today and keep using.
Zoomo is growing very quickly across the world with its first purpose-built e-bike, which is exciting in itself. But Zoomo has bigger plans. It plans to launch different variations of e-bikes purpose-built for different types of deliveries. So stay tuned and keep your eye on Zoomo. They are providing the best vehicle to provide the best e-commerce delivery experience from Sydney, Australia to San Francisco, CA — and soon, Latin America with WIND Ventures’ help.
About Brian Walsh
Brian Walsh leads WIND Ventures in San Francisco — the strategic venture capital group for Copec, which is a leading energy and retail corporation throughout Latin America and the United States. Brian has two decades of venture capital experience in the San Francisco Bay Area, both in private and strategic venture capital. Most recently, Brian was an Associate Partner and Senior Expert at McKinsey&Company where he led the Firm’s corporate venturing advisory efforts with global Fortune 500 CEO clients. Brian holds an MBA from Massachusetts Institute of Technology (MIT) and a BS in Physics from Tufts University.
About WIND Ventures
Based in San Francisco, WIND Ventures is the strategic venture capital arm of Copec, one of the leading energy companies in Latin America and consistently voted as one of the most valued brands in the region. WIND Ventures leverages Copec’s significant resources to accelerate growth, primarily within Latin America, for startups and scaleups across the world within the new mobility, energy and retail sectors. Visit windventures.vc or follow us on Linkedin and Twitter.