Obibox: faster to deliver than giant Amazon

Once upon a time, two companies each had a strength that the other lacked.

Obibox: faster to deliver than giant Amazon

Once upon a time, two companies each had a strength that the other lacked.

They have therefore decided to unite to offer an even more complete range of services in the delivery of parcels. This is how Obibox was born, from the merger between Xpedigo and Tecor Transport.

“At Xpedigo, we had developed high-performance technology, but to grow, we lacked the logistics infrastructure to improve the operational side. With the pandemic, demand had exploded, we had to transform,” explains Jordan Arshinoff, who co-founded Xpedigo in 2016.

From competitor to partner

Rather than invest a large sum to set up a network of distribution centers, he and his partner Paul-Henri Erhard went in search of a partner which they found with Tecor, a company owned by Michael Cotnoir and Francois Levesque.

“They were our main competitor and they were looking to computerize to improve their processes. The fit was perfect not only in terms of services, but also because, as entrepreneurs, we shared a similar experience and a vision of customer service and growth,” adds Jordan Arshinoff.

More than six sorting centers

The "marriage" was therefore formalized in December 2020. The months that followed were very busy. We had to adapt and implement the technological platform for the entire new company, add or expand sorting centers, redo the visual identity with the new name.

Today, Obibox operates six sorting centers in Quebec and soon three in Ontario. It serves more than 300 customers, including Cook It and Altitude Sports, and delivers within 24 hours, seven days a week.

“In greater Montreal, we are able to deliver the same day. A customer can order his sports shoes in the morning and receive them in the afternoon. We are faster than Amazon,” says Jordan Arshinoff.

Obibox has 70 employees, of which about ten people are assigned to technological development. “Our developers are here and abroad. We even have one based in Ethiopia. »

Green shift

In the spring, Obibox also undertook to green its fleet of vehicles. At the time of the interview, she had just received 10 electric vehicles, Ford E-Transits, which had arrived just in time to show off the company's new colors.

"We expect five more," said Jordan Arshinoff. Our goal is to decarbonize 90% of our delivery operations by 2030. These vehicles will be used primarily for delivery in major urban centers. For longer-distance deliveries, we already use propane-powered vehicles, which reduce our greenhouse gas emissions by 30%. »

The investment is substantial. Each vehicle costs approximately $75,000 including subsidy. It was also necessary to provide for the installation of charging stations.

"With the price of gasoline going up, the maintenance that will be reduced and a better resale value of these vehicles, we have calculated that the amortization period will be the same as if we had purchased gasoline vehicles", says Jordan Arshinoff.

Depending on the day, the company can have between 100 and 200 vehicles in circulation thanks to its delivery partners, who will be encouraged to convert to electric eventually.

More than a year after the merger, the agreement is in good shape between the entrepreneurs.

"The honeymoon continues, but we don't take anything for granted. By joining forces, we have created great opportunities for growth. You just have to make sure you're all on the same wavelength. In our weekly meetings, we often ask ourselves the question: "Do we still love each other?" The answer is always yes,” concludes Jordan Arshinoff.

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