The search engine giant Google is entering the parcel delivery market with the acquisition ofthe Canadian parcel terminal start-up BufferBox for reportedly $17 million in a move to compete
with Amazon’s expanding parcel locker service.Although BufferBox has only just launched operations, Google is believed to see the company as aplatform for a potential large parcels delivery business in the future. A Google spokesperson wasquoted as saying: “We want to remove as much friction as possible from the shopping experience,while helping consumers save time and money, and we think the BufferBox team has a lot of greatideas around how to do that.”
Amazon, which mostly uses postal and parcel operators for deliveries, has started to install itsown parcel lockers in several US cities and in London and last month agreed to roll them out atStaples stores across the USA.
Founded in May 2011 and based in Waterloo, Ontario, BufferBox launched its network of parcelpick-up stations a month ago through a contract with Metrolinx, the agency that oversees GO Transitin Ontario, the regional public transit service for the Greater Toronto and Hamilton Area. Startingout with five GO stations, BufferBox aims to have 21 terminals installed by the end of this yearand to expand the network to 100 machines by the end of 2013.
Designed with online shoppers in mind, BufferBox’ automated, self-serve parcel pick-up stationsare a safer and more convenient shipping alternative to home delivery for Canadian customers sothey don’t have to wait at home for hours for their parcel to arrive.
BufferBox notifies shoppers via email as soon as a parcel is available for pick-up, and providesa one-time PIN code they can use to retrieve their goods from the BufferBox. They can pick up theirparcel within 72 hours after which it will be transferred for storage in the BufferBox warehousebut can be redelivered on request within seven days. Initially provided for free, the service willeventually cost customers $3-4 per parcel.
“Online shopping can be cost effective and time saving, but today’s outdated and frustratingparcel delivery process can ruin the experience,” Mike McCauley, co-founder of BufferBox, said.“Our technology offers people shopping online peace of mind that their parcel is secure andavailable for anytime pick-up.”
In a blog post, BufferBox expressed its excitement about being acquired by Google. “We have beenable to achieve more than we could have ever imagined since we started working on our idea a coupleof years ago, and the team couldn’t be more excited about the future.”
“As online shopping becomes a bigger part of how you buy products, we look forward to playing apart in bringing that experience to the next level. We are happy to share that it will be businessas usual for our users and we are looking forward to continuing to build out the service,” thestart-up firm said.
BufferBox’s 10 employees will move to Google’s offices in Kitchener-Waterloo as part of thetakeover.
