Karooooo Acquires South African Logistics Startup, Picup, for $4.8m
Zak Calisto, CEO, and Founder of Karooooo and Cartrack has acquired Cape Town-based on-demand logistics startup Picup Technologies for $4.8m. Picup Technologies was purchased for 70.1% by Karooooo with an option to increase its shareholding to 83.5%.
Picup is a logistic startup founded in South Africa in 2014 after the founder’s horrible Black Friday delivery experience, which propagated the saying that “Logistics requires better tech!”
Through Picup’s cloud-based technology, the startup enables companies to plan efficiently without having to consider peak times into their base operational capacity by facilitating an elastic fleet of third-party delivery drivers to accommodate overflow volumes.
Picup has over time reduced logistics risks, and provided prompt delivery for customers. The startup also allows businesses and transporters to use the platform to plan and assign cargo, get real-time tracking, and evidence of delivery with automatic payments.
Zak Calisto, CEO and Founder of Karooooo and Cartrack speaking on the acquisition asserts that it is to equip karooooo for the dynamism in the business space.
“As we think beyond connected vehicles, it is imperative that our cloud platform is a comprehensive mobility solution that addresses the needs of both our existing and future enterprise customers.
“E-commerce transactions across the globe are increasing dramatically and we need to ensure that we are well-positioned to assist our enterprise customers in fully digitalizing the mobility aspects of their businesses. Picup helps enterprises scale their operations without having to unnecessarily invest in additional assets.
“Our customers that use the Cartrack Delivery functionality on our platform will soon be able to have a one-stop cloud platform to manage their fleets with the option of using crowd-sourced drivers when faced with unplanned demand” Cartrack, said.
The acquisition will now allow Cartrack’s users to manage their own fleets and workflows, as well as interface with specialist courier firms and a network of vetted crowd-sourced drivers, allowing them to scale their e-commerce business, deliveries, and general logistic needs more efficiently.