Business

Brazilian logistics players saw a surge in demand during April

With the increasing volume in online purchases of medicines, food and home appliances, companies are operating at a Black Friday pace

Photo: Loggi
  • While the first half of March recorded a drop of up to 30% in the volume of deliveries for some companies, the volume of deliveries in April nearly doubled;
  • Online purchases of items such as medicines, food, and home appliances have been pushing these delivery figures.

The volume of deliveries in April nearly doubled in comparison to March for many logistics players in the country, according to what reported Valor Econômico newspaper, pushed by the rise of online purchases of items such as medicines, food, and home appliances during the pandemic.

While the first half of March recorded a drop of up to 30% in the volume of deliveries for some companies, April saw the scenario change and companies are working to keep operations at full steam.

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Logistics startup Loggi saw a 94% increase in orders in April compared to March. About 80% of the trips made by the 40 thousand motorcycle couriers are to take medicines, meals, and supermarket purchases. The pandemic did not suspend the startup’s plans, which will invest BRL 250 million this year, 50% more than in 2019, to hire engineers and buy software and automation equipment.

Jadlog, owned by the European DPDgroup also saw a surge in demand: in the second week of March the volume of orders fell 30%, but from the end of March there was a massive increase in e-commerce. At the beginning of the quarantine, the most purchased items were TVs, notebooks, and accessories to ensure remote work and family entertainment; followed by perishable products and controlled drugs after this period. According to the company, deliveries made to the consumer represent 60% of the business.

At Sequoia Logística, controlled by the Warburg Pincus fund, the average of 100k daily deliveries fell in early March, but now it is growing above 10%. “In the first quarter there was no impact, but the revenues forecast for the year will be revised,” President Armando Marchesan Neto told Valor. The forecast was to reach BRL 1.25 billion in 2020.

Braspress Transportes Urgentes also detected an increase in orders, especially in the category of products weighing up to 15 kg. In the consumer business division, which mainly includes virtual stores, share in sales rose from 25%, before the start of the pandemic, to the current 55%. According to data from the consultancy firm GfK, sales of durable goods at online stores increased by 55% in the week of April 6 to 12 YoY, with fan sales growing by 122%, followed by epilators (103%), notebooks (95%), shavers (91%) and TVs (57%).