7. September 2020 | Press release
DPDgroup pursues its development in Brazil and now holds 98% of Jadlog’s capital
7 September 2020 – DPDgroup and Jadlog, one of the largest express delivery companies in Brazil, have decided to strengthen their partnership. This agreement highlights an already close cooperation between both companies. In 2017, DPDgroup had acquired 60% of Jadlog, one of the main logistics operators in e-commerce.
Following this acquisition operation in 2017, Jadlog developed its business by 50% per year and today DPDgroup reaffirms its confidence in the Brazilian market and in Jadlog.
Jadlog is leveraging on e-commerce
Acccording to a survey conducted by ABComm (Brazilian Association of Electronic Commerce), Jadlog is considered as the most used private carrier for e-commerce in Brazil.
The DPDgroup e-shopper barometer study conveyed in Brazil between May and July 2019, reveals two key trends:
- Brazilian e-commerce is very concentrated around the e-shopping addicts, the most frequent online buyers, representing 16% of the Brazilian e-shopper population and who make 62% of all online purchases in Brazil
- Brazilian e-shoppers major expectations in terms of delivery are real-time information and flexibility. On top of that, knowing the name of the carrier at checkout is a must for them : 75% consider it important.
“Jadlog has grown consistently, expanding its presence mainly in the e-commerce sector in Brazil, which is becoming more strategic every day, and confirmed our positive expectation when we entered the business. We seek to increase our performance in the B2B market and to continue expanding in the e-commerce market, where we are already a strong reference”, says Olivier Establet, Chairmanof the Board of Directors at Jadlog.
In the e-commerce segment, Jadlog is committed to increasingly offer facilities to retailers and delivery options to end consumers, through major investments. In 2019, more than 1 million orders were delivered through the Pickup network composed of more than 3,000 points spread throughout Brazil, this number should double in 2021.
Over the past 4 years and with GeoPost/DPDgroup as a majority shareholder, Jadlog multiplied the volumes of deliveries by 6.
And in 2020, Jadlog has been a key player through the pandemic, able to answer customers needs. As a result, Jadlog doubled its growth revenue during the first semester.
The company invested in the creation of the Jadlog COVID-19 Fund, with the objective of allocating resources to support the franchised network and deliverers during the period of containment measures for the new coronavirus. There are about half a million R$ (about 80 K€) destined to the fund and to the franchisees and deliverers, so they can face the incremental costs and difficulties that the moment imposes. Jadlog has increased for a certain period, an additional amount to be paid per delivery made, directly to the delivery franchise, in order to help strengthen local prevention and control initiatives, as well as to alleviate the operational difficulties imposed by the moment. In addition, Jadlog has allocated another amount per delivery made by its franchisees to a common support fund. The resources accumulated in this fund will be used to help deliverers who are away from quarantine, either because they are in the risk group (over 60 years old or with pre-existing diseases) or in the cases that contracted Covid-19. Jadlog estimates that the benefit will reach R$ 550 (almost €90) per month. Clients such as Amazon and Melhor Envio joined the Fund, following the same guidelines for each delivery of orders by franchises, in different periods, contributing to strengthening the Jadlog COVID-19 Fund and supporting the franchised network.
Connecting Brazil to the rest of the world
At the national level, Jadlog operates through more than 500 franchisees supported by 17 branches spread across the country and serving more than 40 thousand shipping customers.
“We consolidated our operations in the B2B segment, and we are overly optimistic about the business outlook since we have doubled our volume of operations over the last two years. We want to offer shippers an even safer and shorter service, based on more optimized processes.” highlights Bruno Tortorello, CEO of Jadlog.
The Jadlog network is connected to the international network of DPDgroup. This international network is a strong asset that gives the Brazilian customers an access to the global market. According to DPDgroup e-shopper barometer, cross-border purchases in Brazil are substantial since 58% of Brazilian regular e-shoppers have already bought online from foreign websites (80% from China and 42% from the USA).
Alfonso Davo, the previous CEO and founder of Jadlog will remain a shareholder, having 2% of the shares in the company.
“Alfonso Davo is the founder of Jadlog, I therefore fully entrust him to be a key stakeholder for the future development of the company”, states Olivier Establet.
“I am very confident that Jadlog will pursue its development thanks to the ongoing support of DPDgroup” confirms Bruno Tortorello.
In order to reflect this partnership and to conquer other markets, Jadlog adopted the DPDgroup branding with the red cube, from 2018.
DPDgroup is the largest international parcel delivery network in Europe.
DPDgroup combines innovative technology and local knowledge to provide a flexible and user-friendly service for both shippers and shoppers. With its industry-leading Predict service, DPDgroup is setting a new standard for convenience by keeping customers closely in touch with their delivery.
With 77,000 delivery experts and a network of more than 46,000 Pickup points, DPDgroup delivers 5.3 million parcels each day – 1.3 billion parcels per year – through the brands DPD, Chronopost, SEUR and BRT.
DPDgroup is the parcel delivery network of GeoPost, which posted sales of €7.8 billion in 2019. GeoPost is a holding company owned by Le Groupe La Poste.
Jadlog is one of the largest logistics companies and transportation of fractional express cargo in the country with 15 years in the market.
Standing out in the market for the speed and quality of its services, Jadlog has one of the largest door to door distribution structures in Brazil. Through its franchise network, with more than 500 units spread across all capitals, the Federal District and major cities, the company serves all Brazilian municipalities. In recent surveys conducted by Olist and ABComm, the company was voted the most used private carrier by Market Places. Jadlog uses all commercial aviation and cargo in the country. The dedicated land fleet consists of more than 240 trucks and trailers and 2,500 utilities.
Online survey conducted with GfK among 1,001 Brazilian e-shoppers (18+ y.o.) that have ordered physical goods online since January 2019 and received a parcel