The last mile sector and the delivery It doesn’t stop at any time. While Gorillas and GoPuff pack their bags to retreat to more profitable regions, leaving Getir alone in the face of danger, others land with the idea of face new more bearable verticals. Or, at least more profitable. The last to arrive, in this case to Spain, is the Swedish Urb-it. First in Madrid, Valencia and Barcelona –with the intention of continuing to grow–, the technology company founded in 2014 wants to succeed in a market that has experienced the greatest e-commerce growth in Europe in recent years.
And they want to do it under the model of sustainability and with riders – delivery men in this case – under the wing of their internal staff. At a time when hiring models occupy the attention of the big technology companies in the sector, the Swedish brand has preferred to play it safe. Also with an electric mobility model that is not only focused on large vans. In addition to removing contamination, the objective of Urb-it is to avoid the traffic of the big cities adding bikes or other viable transportation models and avoiding combustion cars. Some that, like other last-mile companies, need those dark stores to work.
In its first moments, Urb-it opted for a model similar to Glovo’s, outside the delivery. This this, connecting businesses and people with an external parcel service. With this model, small businesses would not have to resort to in-house delivery drivers. The problem? It was not profitable. In fact, Glovo soon started paying more attention to delivery. One that, in the long term, would reap more revenue for the technology company. Urb-it, from its Swedish stronghold, noticed the same detail and turned its model around.
“We are moving to a large-volume distribution model in high-density environments,” he explains to hypertextual Ignacio Achirica, Country Manager in Spain. of the small shops, Urb-it went on to negotiate with the big players in the transport sector. DHL, Carrier… Also with Amazon, the king of parcels and e-commerce. All companies that, seeking a sustainability strategy, want to use third-party services to manage their messaging.
The Urb-it contracting model, beyond the regulations in Spain
Tempers remain heated in the delivery sector in Spain. On the one hand, the Labor portfolio, led by Yolanda Díaz, announced measures against non-compliance with the Rider Law – bare-chested – by Glovo and Uber Eats. The first since the very premiere of the new regulations, the second since its announcement last August. In fact, a week ago, Díaz announced a fine of 79 million euros against the Spanish unicorn for its breach of the regulations. The reality is that this fine corresponded to a Labor Inspection prior to the announcement of the Law, but Labor already scored a point in its fight against delivery platforms.
Urb-it wants to avoid all these models. Not only in Spain. Although they recognize the particularity of local regulations, from the company They assure that it is a model that is part of the DNA of their company. Wherever they go.
They want to avoid two issues. On the one hand, the subcontracts –which Uber Eats riders already suffer–, and on the other hand, the professionalization of delivery people. “These are the models that companies should promote, but we also believe that couriers require prior training. Also because productivity increases, something that we would not be able to achieve with models of high turnover of employees and riders”Achirica points out.
Swedes, also in investment
Urb-it is a 100% Swedish product listed on Nasdaq. And although his interest in the markets was positioned outside his place of origin, he does maintain strong local investors.
As a good Swedish company, Urb-it has the approval of the best-known brand in the Nordic country. Part of its capital originates from the Ingka Group, which is none other than the financial arm of Ikea. That, since its foundation, they have been highly interested in the innovation sector. Urban Jungle, Bolt, Livspace or Fluid Truck are among its investment focuses. Also in the solar panel business in Spain with an investment of 100 million euros in different local parks. Likewise, the technology delivery also has the support of Handelsbanken, Skadia and the fourth largest pension fund in Sweden, Swedbank.
Now, although they maintain their great interest in Madrid, Valencia and Barcelona, they point out that their objective is Expand your delivery business to the big cities of the country. Also to more areas of interest in which they already operate. Looking, mainly, for more local strategic partners.