The Zoom2u Technologies Ltd (ASX: Z2U) share price has had a stellar start to its listing tenure.
Since debuting on the market late last week, shares in the parcel delivery platform have surged an astronomical 267.5% higher.
Let's take a look at why investors are jumping to get their hands on shares in Zoom2u.
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What's fuelling demand for the Zoom2u share price?
Shares in Zoom2u received a boost yesterday after releasing an exciting investor update.
The delivery service company announced the signing of its first enterprise customer for its Locate2u platform.
Zoom2u revealed it will provide Amart Furniture access to its software as a service (SaaS) platform for a 24-month term.
In addition, the company also announced an agreement with Bing Lee for access to its Zoom2u platform.
The announcement saw great investor interest, pushing the Zoom2u share price 13% higher for the day.
As a result, shares in the parcel delivery platform have zoomed more than 267% higher since listing and are now changing hands at 73.5 cents apiece.
More on Zoom2u
Zoom2u listed on the exchange via an oversubscribed IPO last week, raising $8 million at 20 cents per share.
The delivery service company has two key operating businesses.
Zoom2u is the company's largest segment platform that connects customers with local drivers. Locate2u is its second business that offers customers a SaaS product.
This allows users to manage bookings, optimise routes, and track and share their live locations with customers.
In its prospectus, the company's chairman addressed the strong growth being witnessed in e‑commerce and the increased outsourcing of delivery services. As a result, Zoom2u has valued the Australian delivery services market at $5.6 billion.
In another possible boost to the Zoom2u share price, the company highlighted the global demand for delivery management software and automation of delivery management.
The company's Zoom2u platform commenced operations in 2014. It has grown gross merchandise value (GMV) from $0.4 million in FY15 and forecasts $11.1 million for FY21.
It currently has a customer base of nearly 70,000 individuals, SMEs, and enterprise customers who are connected to more than 8,600 drivers.
Locate2u was launched in late 2020 and is still in its early stage of market development.
The company noted that part of the funds raised from the IPO will be used to scale up sales and marketing efforts for both Zoom2u and Locate2u.
