Ziing.com, a last-mile delivery provider focused on decarbonization, has bought Torstar Corp.’s package-delivery arm in a deal that doubles the Calgary-based company’s size and expands its reach into Southern Ontario and Atlantic Canada.
Ziing announced the acquisition of Metroland Parcel Service on Thursday, saying will add 41 employees and 30,000 package deliveries a week. Six-year-old Ziing employs an Uber-like service for deliveries based on a generative artificial intelligence platform, and the Metroland business will be integrated into it.
The company did not disclose the value of the deal, but chief executive officer Chris Higham said Ziing is expected to generate $70-million in revenues this year – twice last year’s figure. With the acquisition, it now has 109 staff across the country, not including contract drivers.
Ziing is owned by Calgary-based property developer Hopewell Group. Besides its final-mile division, the company also designs zero-emission fleet systems, complete with charging infrastructure, though its Ziing Energy division. Clients include office supply chain Staples, farm machinery maker CNH Industrial, pharmaceutical retailer McKesson Canada, and meal kit companies HelloFresh and Goodfood.
Metroland Parcel’s beginnings were in newspaper distribution, and it expanded into a range of deliveries in Southern Ontario, New Brunswick and Nova Scotia. Metroland Media Group Ltd., a unit of Toronto Star owner Torstar, restructured under creditor production late last year in a process that resulted in the print editions of numerous weekly papers shut down and hundreds of staff laid off.
However, the sale of the parcel business did not stem from that process, Mr. Higham said. Ziing, which is owned by Calgary-based property developer and manager Hopewell Group, had been in talks to acquire the parcel business for most of the past year, he said.
The expansion is part of a long-term plan to expand Ziing’s geographical reach. It also has California in its sights, he added.
“We’re aggregating multiple clients into a delivery network, and providing both same-day and overnight service. That business is for clients that are looking to garner economies of scale and get a much more competitive price point,” Mr. Higham said in an interview.
“There’s very low customization. It’s your typical sort of Amazon model where it’s just drop it and go and on to the next delivery.”
Ziing has also added 17 local service partners to its network, and is planning on moving to a franchise model in the next five years, as it seeks out more acquisitions that fit into its AI-driven model.
California fits into the business model, as its low-carbon fuel and environmental regulations offer a number of advantages for transport and logistics companies looking to operate with a smaller carbon footprint, said Jordan Lypchuk, Ziing’s vice-president of business development. Those include the ability to earn carbon credits for creating charging networks.
“So we’re bringing our expertise from Canada and the carbon markets up here down into California to help them navigate those regulations,” said Mr. Lypchuk, who previously held positions involving carbon credits and offsets.
Jeffrey Jones