The Toronto-based last-mile delivery firm PUDO Inc. will expand its network of parcel pickup and drop-off locations for online consumers after acquiring rival Kinek for $275,000, the companies announced Thursday.
PUDO—an acronym for pick up, drop off—manages a network of more than 5,000 secure lockers at convenience stores, gas stations, and grocery stores in the U.S. and Canada. The company charges e-commerce shoppers a fee to recover packages from those lockers, and shares a portion of that charge with the host store.
Kinek is a New Brunswick, Canada-based firm that manages a similar network of alternative delivery locations that accept and store packages. PUDO will expand its network by acquiring the company and absorbing its 109 operating parcel pickup and drop-off locations with approximately 179,000 users.
"Our acquisition provides over 100 new PUDO Point locations, primarily along the U.S.-Canadian border," PUDO CEO Frank Coccia said in a release. "With 75 percent of Canadians living within 161 kilometers of the United States and e-commerce redefining consumer purchasing behavior, PUDO is providing a new avenue for consumers to enhance and personalize their purchase delivery options."
PUDO plans to continue its expansion of parcel lockers by adding sites, enticing them with a portion of the package storage fee and the promise of driving increased foot traffic to their business.
The company also offers reverse logistics services to retail partners such as Amazon.com Inc., eBay Inc., and Wal-Mart Stores Inc.