PUDO delivering returns for shareholders with its large network of parcel collection points

• ‘Pick Up, Drop Off’ carrier-agnostic parcel collection network
• Designed to resolve the last-mile parcel-traffic-control gridlock that challenges North America’s $700 billion e-commerce sector
• PUDOpoint counters are strategically located in corner stores throughout North America
• Revenue increased by around 35% year-over-year in fiscal 2020 while overall parcel volume increased over 25%

What Pudo does:

PUDO Inc (CSE:PDO) (OTCQB:PDPTF) is North America’s only carrier-neutral parcel pick-up and drop-off counter network.

The ‘Pick Up, Drop Off’ counters were conceived to resolve the last-mile parcel-traffic-control gridlock that challenges North America’s $700 billion e-commerce sector. Nearly 35% of e-commerce parcels are undeliverable on first attempt, and having a network of secure points helps to eliminate over $6 billion in door-dropped parcel theft.

As a carrier-agnostic network, PUDO complements rather than competes with major shipping and logistics firms, including the US Postal Service and Canada Post. PUDO’s technology creates a fluid, data-driven network of storefront counters, transportation companies, fulfillment centers and retailers.

PUDOpoint counters are strategically located in corner stores throughout the continent. Stores are paid per parcel and benefit from additional foot traffic. Consumers can also choose PUDO directly from within integrated shopping carts.

PUDO derives its revenue from a number of streams. The company gets paid to receive the parcel and arrange for its transportation to a regional cross-dock for sorting, arrange for parcel transportation from the distribution center to the chosen PUDOpoint, and to hold the parcel for pick-up.

PUDO currently operates across Canada and in 14 US states. There are over 800 active points in Canada and a further 1,500 registered to become PUDO locations in the country. In the US, the firm has about 3,500 registered to become locations and has further access to about 26,000 locations.

How is it doing:

Unsurprisingly, PUDO is seeing incredible growth amidst the coronavirus pandemic.

In February 2020, just before the pandemic hit North American shores, the company saw parcel return volume increase by 443% during the month, with parcel drop-off numbers rising by 181% and re-direct volume seeing a 66% increase compared to the same figures a year earlier.

At the beginning of March, PUDO and freight giant Purolator formally decided to integrate PUDOpoint across Canada into its national network of parcel counters. The agreement is bringing considerable new parcel volumes and revenues to PUDO, the group has said.

In January, PUDO also completed a 14-state pilot program with Amazon that saw the company offer 30 locations at the Amazon checkout desk for parcel delivery options.

PUDO’s success is paying off in the form of revenue, which increased by 34.6% year-over-year in fiscal 2020. Overall parcel volume increased by 25.3% compared to the year ended February 28, 2019, with a large portion of that coming in the fourth quarter.

Inflection points:

• PUDO sees a wide-open opportunity to grow its business from a consumer membership level, and involve the many e-commerce ecosystem players that those consumer-members conduct online business with, including those overseas.
• The company is continuing to grow its network with new partners across North America, boosting its parcel volume, especially in the US where it sees huge opportunities to expand.
• PUDO is planning on releasing a solution for retailers that will drastically reduce their costs

What the boss says:

PUDO recently launched a charitable campaign known as GiveBack Canada, which asks for gently used clothing and footwear that it will then store and ship off to help replenish thrift stores after the coronavirus pandemic.

Commenting on the launch, PUDO CEO Frank Coccia said: “There is a perfect storm of crisis and charitable opportunity brewing here in Canada, and PUDO is uniquely situated to respond immediately and at no cost to Canadians.”

“Several large Canadian charities need to accumulate post-pandemic thrift store inventory, and millions of Canadians are locked down at home, industriously spring cleaning but with nowhere to send their donation boxes. We are extremely grateful to be of national service during this pandemic,” he added.

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

Story by ProactiveInvestors