Zedify – a UK-based electric cargo bike company – has secured £5m investment to expand its low carbon delivery service, making it available to around 20% of the UK population.
Zedify provides sustainable ‘first and last mile’ deliveries using cargo bikes in city centres, where vans can’t operate efficiently and create congestion and air pollution. Their clients include major retail brands, leading national parcel carriers and hundreds of local independent businesses across 10 UK city locations.
This latest funding round was led by Barclays Sustainable Impact Capital and MEIF Proof of Concept & Early Stage Fund, which is managed by Mercia and part of the Midlands Engine Investment Fund, with additional funds from original investors, Green Angel Syndicate, and new investors, Prova.
Gavin Chapman, co-head of principal investments at Barclays, said: “We understand that the delivery and logistics industry will require significant investment over the coming years to align with the UK’s net zero targets. Barclays are proud to support Zedify in their goal to normalise the use of hyperlocal microhubs and zero emission delivery vehicles within UK cities.”
Research by Zedify shows that its service is over 90% lower in carbon emissions per parcel than urban deliveries by electric vans, which highlights the importance of scaling cargo bike logistics to help the UK hit its net zero targets.
Following investments totalling £1.5m by Green Angel Syndicate in 2020 and 2021 – this new round of funding will enable Zedify to open in new locations including Manchester and Birmingham, as well as scaling its tech platform, for maximum consumer and business benefits.
According to Zedify, the rapid and sustained shift towards online shopping has severe impacts on sustainability and service quality. It is working to disrupt urban parcel delivery to address these pressures head on. They use ‘microhubs’ at the edge of city centres to consolidate parcels, alongside software which builds efficiency and makes for considerably better outcomes for the climate and cities, as well as exceptional experiences for consumers.
Zedify was founded in 2018 by Rob King, who had previously run a delivery business in Cambridge, and Sam Keam, who had a similar operation in Brighton. They set out to make it the ‘go-to green solution for last-mile delivery in the UK’. The company uses only directly employed staff who are paid a real living wage and, to encourage local ownership, its network includes both depots run by Zedify and franchises.
“Zedify’s model delivers tangible benefits- significant carbon reduction in the last mile; a fairer system for workers which counteracts the gig economy; cleaner, safer deliveries that contribute to healthier, more liveable cities; and more choice for consumers about how and when they receive their parcels,” explained King.
“It’s exciting to have the backing of new and existing investors to enable us to realise our mission to transform urban logistics and create cities that are truly better for everyone.”
Earlier this month, circular children’s fashion business Or Collective partnered with Zedify for their London deliveries, while courier Evri will work with the cargo bike provider for emission free deliveries to all consumers within the Bristol Clean Air Zone.