Xpediator signs franchise partners for consumer service in Cyprus, Albania

Freight management services provider Xpediator announced on Tuesday that its business-to-consumer EshopWedrop service, as part of establishing a pan European network, has made its first country franchise awards to manage the brand in Cyprus and Albania to Kronos Express and Albanian Courier SHPK respectively.

The AIM-traded company said EshopWedrop was established in 2015 in Lithuania, and had since expanded into Latvia, Estonia and Romania.

It said the service is a B2C offering that overlays existing B2B groupage service lines run by the group's freight forwarding division, Delamode.

The service enabled consumers in those countries to make online purchases in the UK, Poland, Italy, France and Germany and have their goods delivered quickly and at a price acceptable to consumers.

Xpediator’s board said that historically, while delivery options have been available, the cost of delivery has been prohibitive and consumers in those markets have been deterred from buying goods online from Western Europe.

Delamode already delivered “significant” shipment volumes into Eastern Europe, it added, with EshopWedrop a “logical extension” of that business, accommodating B2C deliveries alongside existing B2B groupage services.

As part of the service, individual items are consolidated and delivered to consolidation hubs in origin countries and then transported using Delamode's freight forwarding infrastructure to the destination countries, with the ‘final mile’ delivery contracted to local courier operators.

Xpediator said e-commerce activity in Europe was increasing “strongly”, with 27% of online purchases in Cyprus in 2016 being cross-border - a 23% increase from 2015.

By establishing a European B2C network, the board said the company would be able to offer a “comprehensive service”, and maximise the opportunity for EshopWedrop.

It expected that the network would comprise franchisees that could complete the ‘final mile’ delivery, and were able to invest in marketing the EshopWedrop brand in their respective countries.

The first two franchise partners, Kronos Express and Albanian Courier SHPK, were both well-established courier companies in Cyprus and Albania respectively.

Xpediator said the agreements involved an upfront fee for the exclusive country franchises, and a commitment to invest in promoting the EshopWedrop brand in their markets.

“EshopWedrop is a natural extension of our existing operations and represents an affordable solution to the many consumers living in CEE countries who have been priced out of buying goods from international online retailers,” said Xpediator CEO Stephen Blyth.

“The demand for this service is substantial and we have a good pipeline of potential franchise partners for a further five countries which once completed would see us provide a pretty comprehensive service for the CEE region.

“It is early days but the potential for EshopWedrop is exciting.”