Urb-it offers green last-mile deliveries across France and the UK through its couriers, for e-commerce, retail and the on-demand market. The couriers deliver to the end-customer by bike, cargo bike, public transport, or on foot. The company was founded in 2014 in Sweden, where it also has its headquarters. It is a certified B Corporation due to its impact and continuous innovation in sustainable logistics. Its partners are divided into two segments: carriers and retailers. Carriers are defined as delivery companies, whereas retailers are defined as brick-and-mortar stores and pure play e-commerce companies.
The company is likely to benefit from the Urban Access Regulations in Europe and the implementation of LEZ (low emission zones), which could increase the demand for Urb-it’s offering. Moreover, the underlying market for last-mile deliveries is growing rapidly and is anticipated to continue doing so. If the company can increase its share of retail customers, it is likely that its margins will improve.
The company has not yet been profitable and is highly dependent on an improvement in its contribution margin and continued growth in volumes. It currently has a high cash burn rate, and it is a small player in a large and competitive market where competitors could emerge. Additionally, its partnerships with carriers and retailers generally span 1.5-2 years to begin with, so there is a risk of the partnerships not being extended after this period.