Start-up UAE parcels service Parzel has bought express operator Zip Express to gain volumes for itsautomated parcel collection machines and to create a new regional growth platform.
Parzel was launched in March this year by Kedu, a Dubai-based company specialising inautomated services. Kedu agreed an exclusive strategic partnership with KEBA, the Austrian-basedsupplier of parcel collection machines whose customers include DHL, Post Danmark, Austrian Post,Norway Post and Turkish Post. The self-service machines can be used to drop off or collect parcelsand feature separate secure compartments per delivery.
Parzel would offer a new kind of delivery service in the UAE, providing greater levels ofefficiency, better technology and less complexity, and enabling logistics companies to offer analternative delivery option to their customers, the company explained. In particular, the parcelpick-up boxes could overcome local problems delivering to residential and business addresses in theemirates, according to experts.
The new service was launched with three machines in central Dubai. The company said itplanned to install 15 parcel machines in Dubai initally and then gradually add more locationsthroughout the Emirates.
Obaid Al-Qahash, Kedu managing director and creator of the Parzel concept, said in March: “Wehave plans to develop this aggressively over the next 6-12 months. We will be looking at expandingthe offering across Dubai initially with a view to installing more machines in high density, hightraffic locations across the Emirates and eventually, wider markets.”
In its next step, the company bought Zip Express, described as “one of the fastest growingcourier and logistics company in the UAE”, late last month. The acquisition would create a new anddynamic logistics partnership for the region under the Parzel brand name, it said.
Announcing the deal, Al-Qahash said: “This acquisition presents a significant moment in ourdevelopment within the UAE. Zip Express have developed a very successful platform and we are verykeen to harness their expertise and make Parzel even stronger as we grow.”
Zip Express offers next-day delivery of documents and parcels in the UAE, road expressdelivery across the GCC economic area as well as Import Express shipping to 120 countries.
The Parzel managing director added: “We have a very clear and structured plan for the rest of2011 and this partnership with Zip Express is part of our long term strategy to redefine thelogistics space within the UAE and beyond.”
