The Zoom2u Technologies Ltd (ASX: Z2U) share price is powering ahead during mid-afternoon trade today.
This comes as the company announced an agreement with Australian household hardware giant, Bunnings Group.
At the time of writing, shares in the innovative delivery solutions provider are up 19.51%, trading at 24.5 cents.
Zoom2u teams up with Bunnings
Investors are rallying behind the Zoom2u share price after the company expanded its service offering to Bunnings.
In today’s release, the company advised Bunnings Warehouse customers would be able to use the Zoom2u platform for local delivery of products.
The Zoom2u platform connects local independent couriers in a customer’s area for fast same-day delivery. Some of the features include a live tracking link showing the real time location, and an ETA on the delivery.
The partnership follows a successful trial of the service that ran in selected Bunnings stores across the country.
Under the terms of the non-exclusive agreement, there is no minimum volume of spend or fee commitments required at the Bunnings end. And while the agreement can’t be quantified, it’s expected provide an additional revenue stream to Zoom2u.
Zoom2u founder and CEO, Steve Orenstein welcomed the deal, saying:
I am absolutely delighted to announce this agreement. To be chosen as one of Bunnings’ last mile delivery providers is a validation of the Zoom2u Platform.
It has been a pleasure working closely with Bunnings over the past few months as they trialled the service.
Zoom2u share price summary
Despite today’s gains, the Zoom2u share price has fallen 40% in 2022. However, its shares are up 20% when looking at the past 12 months.
Zoom2u commands a market capitalisation of roughly $28.6 million based on its current share price.
The post This ASX tech company just did a deal with Bunnings, and its share price is up 20% appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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