Fit for the future

Zedify is one of the UK’s largest cargo bike delivery networks. Daniel Blackham sits down with CEO and co-founder Rob King to discuss the company’s significant growth, the hurdles it faces, and how the business plans to play a role in diversifying the sector.

The last mile delivery market has boomed in recent times with cargo bikes becoming the modal choice for many multi-million pound companies. Retailers are looking to differentiate themselves and break the mould, and brands are engaging in more sustainable business practices with a focus on delivery, because being sustainable is not just good for the planet, it’s good for customer retention and happiness, which translates to growth.

“It’s great to see companies like HelloFresh, Amazon and Evri all investing in cargo bike delivery,” says Rob King, CEO and co-founder of Zedify, when discussing the current landscape of the cargo bike delivery sector.

“Each big name that remodes to cargo bikes is a big vote of confidence in the market.”

Founded in 2018, Zedify is one of the market leaders in the sector with its tech-enabled, cargo bike first model helping enhance e-commerce brands, reduce cost and is over 80% lower carbon than the next best alternative. Currently delivering in Brighton, Bristol, Cambridge, Edinburgh, Glasgow, London, Manchester, Norwich and Plymouth, it plans to operate in 51 UK towns and cities within the next five years.

Despite huge growth since its inception, Zedify operating within a young industry presents unique challenges. Legislation and a long-standing car-first mentality are just some of the hurdles preventing a wider adoption of cargo bikes in cities and towns up and down the country.

“Bike technologies are advancing with more variety of models being used, but we need clarity on the regulation of bikes from the government moving forward,” explains King. “And while there is a clear desire from central and local government (and the general public) to have fewer large and polluting vehicles in city centres, it’s still not a level playing field between EVs and cargo bikes.

“More investment and support is needed via government policies to speed up the transition to cargo bike centred deliveries.”

The growth of Zedify as one of the UK’s largest electric cargo bike delivery networks has also created a new sub-sector for the firm to cater to. While the core focus remains on first and last mile deliveries using cargo bikes in city centres – where vans can’t operate efficiently and create congestion and air pollution – as the business has scaled, Zedify has been pushed to develop a “middle mile” infrastructure.

“Big e-commerce brands rely on this middle step to distribute their parcel volumes with incredible pace from warehouse to doorstep,” explains King.

“This has been a huge step up for the business and not without its challenges. Because we’re a disruptor, we’re building a system that doesn’t fit with pre-existing structures and so it’s been important to make the right decisions around cost, sustainability and service. “With retailers under increased pressure from a period spanning the cost of living crisis, political uncertainty, Brexit and the war in Ukraine, it’s often a challenge to get integration projects moving as quickly as we all want them to.”

A year to remember

 When asked to sum up the last 12 months, King simply replies: “Busy.” He continues: “We’ve made incredible progress this year which has included an additional £5m investment from existing investors including Barclays and Mercia.

“We’ve signed up retail giants including HelloFresh, Veja and Selfridges and built a rapidly growing pipeline of top tier retail brands looking to switch to cargo bike delivery.

“We’ve invested in a new technology stack to support our future growth and ensure ecommerce shipping tech integrations are smooth and fast. It’s a big vote of confidence for all our stakeholders – clients, staff and future investors.”

“The investment itself is supporting our growth, improving our tech and customer experience and building the middle mile infrastructure needed to bring the cost to serve down.”

At the time of the announcement, Zedify also confirmed that the funding would enable it to expand into more cities, as well as launch a new Midlands hub.

“It’s known as the golden triangle in the logistics industry on account of how many retail logistics operations are based there and it’s within a four hour trip for 90% of the UK’s population, so forms an efficient part of central distribution,” says King when describing the importance of the Midlands to Zedify’s future plans.

“Currently our footprint is well spread across southern cities including London, Brighton and Bristol, but there’s a gap in central areas, especially in cities like Birmingham and Nottingham which have huge populations, so it’s strategically important for us to expand there.”

Since March 2023, the company has almost doubled the size of its team from 113 to 209 and signed up national brands including Hello Fresh, Selfridges and Veja.

With the latest investment, it expects to create 80 new jobs, including 20 in the new Midlands hub, and to significantly increase its turnover.

“Over the next 12 months, we plan to triple our revenue but it’s likely we’ll only have one more city launch,” adds King. “The focus for us is on building density, improving cost to serve and expanding our client base with UK wide retail giants.

“It’s absolutely key to Zedify’s future success that we nail these elements before moving on to our ambitions to be in over 50 UK cities by 2027.”

Leading the charge

Away from the figures, King recognises that Zedify could play a significant role in other avenues when it comes to transforming the sectors it operates in. Earlier this year, the business launched a recruitment drive to increase the number of women in the logistics industry.

In collaboration with Loud Mobility, Zedify hosted an interactive event titled “Women Delivering the Future,” offering women a unique opportunity to explore careers in cargo bike delivery and the wider logistics sector more generally.

According to figures released by Zedify, the logistics industry in the UK is currently experiencing a significant gender imbalance, with only 19% of its workforce being women. Compounding this, 73% of women in urban areas do not cycle.

With Zedify operating at the intersection of logistics, cycling, and tech – three traditionally male-dominated spheres – it is committed to driving change.

“At Zedify, we recognise that the lack of gender diversity in logistics is not just a social issue, but a commercial one,” comments King. “Studies show that gender-diverse teams are 47% more profitable, and we see the positive effects of balanced teams every day.

“Our own data reveals that our mixed-gender delivery teams are not only more efficient but also report greater job satisfaction. It’s time we address this imbalance head-on.”

The aforementioned event, which took place in Hoxton, offered practical insights into a career in logistics, with participants learning new skills and hearing from inspiring women already thriving in the sector. Four women who attended were interested in trial shifts as a direct result.

“This is not just a one off,” concludes King. “Keep an eye out for upcoming events and partnerships as we spearhead this campaign to get more women into cargo bike delivery and logistics more generally.”