A logistics platform for small and medium-sized businesses, Sendstack, is making a strategic shift by phasing out its last-mile delivery product, DLVR.
Instead, Sendstack will concentrate on its new offering, CTRL, designed to assist businesses in routing and tracking deliveries, facilitating driver and customer communication, processing payments, and providing operational insights through a centralized dashboard.
While DLVR catered to small and medium-sized businesses in need of last-mile delivery solutions, CTRL is aimed at larger corporations with established logistics departments, whether utilizing in-house delivery fleets or external partners.
The decision to discontinue DLVR comes as a surprise, especially since the cofounders reported serving 20,000 businesses, generating $250,000 in revenue, and achieving profitability post-fulfillment.
According to the cofounders, Ifeoma Nwobu and Emeka Mba-Kalu, DLVR was essentially a stepping stone for Sendstack to understand the challenges of logistics management firsthand, insights that were crucial in shaping CTRL to address these issues.
Mba-Kalu acknowledged the challenges of simultaneously managing both DLVR and CTRL, suggesting that focusing on one product was necessary for the company’s growth.
CTRL aligns with Sendstack’s vision of becoming a digital logistics backbone for African businesses, offering a platform to connect with various logistics providers for seamless goods movement.
Mba-Kalu believes that CTRL’s scalability makes it an attractive proposition, particularly in emerging markets like Southeast Asia with vibrant economic activities and fragmented logistics networks.
While CTRL presents a cost-effective growth avenue for Sendstack, it also poses the challenge of persuading traditional enterprises to embrace new technologies, potentially necessitating substantial organizational adjustments and training for delivery personnel and logistics teams.
Establishing partnerships with such enterprises can be a prolonged process, with the integration of new software across multiple branches potentially taking a year or more.
Sendstack’s value proposition to these enterprises lies in consolidating their entire logistics operations onto a single platform, offering potential cost savings and streamlining communication among delivery partners.
Youthful, digitally savvy businesses in sectors like e-commerce, food delivery, and telemedicine may be more receptive to adopting Sendstack’s technology.
Technological solutions like CTRL are gaining momentum, promising to enhance the logistical infrastructure of existing players and creating a level playing field for new entrants in the competitive B2B logistics landscape.
In regions like Kenya, startups such as Leta have experienced notable success, expanding operations across multiple countries and securing partnerships with prominent brands, indicating a growing trend in the logistics technology sector.