A number of Australian tech companies are stepping up to fill the void left by the abrupt collapse of major courier provider Sendle earlier this month.

Sendle, which provided virtual courier services primarily to SMEs and online retailers, told its customers earlier this month that it would be “halting all bookings for parcel pickup and delivery”, and that parcels that had already been picked up would only be delivered “at the discretion of the delivery partner”.

This left Sendle’s many customers in a significant lurch, with many scrambling to find a shipping alternative within hours of receiving the devastating news.

According to Google Trends, there has been a 5,000 per cent increase in people searching for “Australia Post” and “Sendle Australia”, and for rivals “Aramex” and “Couriers Please”.

Some other shipping providers have attempted to position themselves as Sendle alternatives and hoover up customers left without shipping services.

Two months’ worth of customers in three days

Zappy, a shipping software providing access to a network of domestic and international couriers and heavy freighters, saw an 880 per cent increase in search volume in days following Sendle closure.

In the first three days, the Australian company signed up as many customers as it normally would in two months.

According to Zappy CEO Jimmy Wu, the company began receiving inquiries on the same night that Sendle told customers it would be shutting down.

“You could tell from the tone of the emails that companies needed to find a solution, and quickly,” Wu said.

‘When one major provider exits suddenly, it doesn’t just disrupt deliveries – it reduces choice, drives up pressure on remaining networks, and risks creating a heavier reliance on a single dominant carrier.”

Aramex has also moved to position itself as a Sendle replacement, with some of its customers already using Sendle.

“We are ready to support e-comm and B2B businesses that are seeking an alternative courier partner moving forward,” the company said.

“Aramex has the infrastructure, global network, national coverage and local franchise expertise in place to assist customers who need ongoing delivery services without disruption.

“Our priority is providing certainty, reliability and continuity of service for Australian businesses.

“Aramex has a long history of delivering for Sendle customers. Aramex operations continue as normal, providing reliable courier services to our customers.”

Other options for former Sendle customers include Shippit and a return to Australia Post.

Startups left in a lurch

It’s not the first time a major shipping provider has shut down, leaving customers in trouble.

In 2019 Temando, then Australia’s most widely used multi-carrier shipping and delivery orchestration platform, was shut down after an acquisition by a global parent company.

“When Temando exited the market, thousands of merchants lost access to a critical piece of logistics infrastructure,” Wu said.

“The lesson from Temando was clear. When a key logistics platform exits, the impact ripples far beyond the company itself.

“It exposes how dependent startups and small businesses are on shared infrastructure – and how little margin for error they have when that infrastructure disappears.”

While larger firms are more able to absorb the costs from having to shift to a new provider, things will be much harder for startups and small businesses, Wu said.

“Big retailers usually have multiple direct courier accounts, established trade references, and enough shipping volume to negotiate terms,” he said.

“Startups and small businesses don’t have that luxury.

“Without scale or long credit histories, it’s much harder for them to open direct carrier accounts. They’re often last in the queue, with limited bargaining power and fewer alternatives.

“When you only have one egg, you can’t put it in different baskets.

“If your volume is small you can’t easily split volume or spread risk. The result is delayed orders, unhappy customers and immediate pressure on cash flow.”