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Sendstack Transitions to Logistics Software for Corporates, Discontinues Last-Mile Delivery Service

by Iyanu Ale
October 25, 2024
in Startups, Tech
Reading Time: 3 mins read
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Sendstack Transitions to Logistics Software for Corporates, Discontinues Last-Mile Delivery Service
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Sendstack, a logistics platform supporting small and medium-sized businesses and backed by OnDeck, has announced a major shift in its business model. The Nigerian startup is discontinuing its popular last-mile delivery service, DLVR, and pivoting toward offering a new logistics software product for large corporates, called CTRL.

The newly launched CTRL platform enables businesses to manage their logistics by tracking deliveries, maintaining real-time communication with drivers and customers, processing payments, and generating insightful analytics, all from a centralized dashboard. While DLVR primarily catered to small and medium-sized businesses in need of last-mile delivery solutions, CTRL is designed for large corporations with established logistics operations, whether they manage in-house fleets or collaborate with third-party delivery partners.

The decision to phase out DLVR comes as a surprise, given the service reportedly served 20,000 businesses, generated $250,000 in revenue, and was profitable. However, co-founders Ifeoma Nwobu and Emeka Mba-Kalu explained that DLVR served as a “means to an end,” providing critical insights into the logistics challenges that CTRL now aims to address. Reflecting on the shift, Mba-Kalu commented, “There is probably a [version of an] economy where we could have run both, but juggling both became challenging.”

CTRL aligns with Sendstack’s long-term vision of becoming a digital logistics infrastructure hub for African enterprises, allowing them to connect with a network of logistics providers and streamline the movement of goods. According to Mba-Kalu, CTRL’s scalability is a key advantage, with the potential to be expanded into other emerging markets, such as Southeast Asia, where economic growth is strong, and logistics systems are fragmented.

However, this new focus on large corporate clients presents its own set of challenges. Convincing traditional companies to adopt new technology can require extensive structural adjustments, such as training delivery drivers and logistics teams. The sales cycle for software solutions targeting large enterprises is often lengthy; in some cases, it can take up to six months to secure a deal, with full integration across branches potentially taking a year or more.

As noted by Sendstack’s co-founder and COO Ifeoma Nwobu, many established businesses still rely on manual logistics processes. “There are a lot of businesses that are comfortable doing things manually and they move fast,” Nwobu remarked on a recent podcast. Sendstack’s pitch is that a centralized platform like CTRL can streamline operations, reduce overhead costs, and minimize inefficiencies arising from poor communication between delivery partners.

While Sendstack faces hurdles in onboarding larger, traditional businesses, younger, digitally-driven sectors—such as e-commerce, food delivery, and telemedicine—may be more receptive to adopting CTRL’s streamlined logistics solution.

Sendstack’s CTRL enters a highly competitive B2B logistics software space. Companies like Kenya’s Leta have shown the demand for logistics software in Africa, rapidly expanding across the continent and gaining significant clients, such as fast-food chain Simbisa Brands and Twiga Foods. With the growing need for efficient logistics solutions in Africa, CTRL is well-positioned to capitalize on this trend.

As African logistics needs continue to evolve, Sendstack’s shift from last-mile delivery to enterprise software marks a strategic response to the sector’s changing demands. For Sendstack, CTRL could be the answer to building a sustainable and scalable future in the rapidly transforming logistics industry.

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