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Sep 21, 2020 at 10:16 PMDPDgroup acquires additional shares in the Brazilian parcel service provider Jadlog, now holding 98% of the company’s capital. Since 2017, Jadlog’s business has grown by about 50% annually. DPDgroup is optimistic about the growth potential of the Brazilian parcel market.
(Paris) DPDgroup and Jadlog, one of Brazil’s largest express delivery services, have expanded their partnership. The agreement highlights the already very close cooperation between the two companies. In 2017, DPDgroup acquired around 60% of the shares in Jadlog, and now it is 98%. Jadlog is one of the most important logistics providers for e-commerce in Brazil.
Since DPDgroup became a shareholder in Jadlog in 2017, the company’s business has grown by about 50% annually. By expanding its shareholding, DPDgroup further emphasizes its confidence in the Brazilian market on one side and in Jadlog on the other.
Jadlog Fuels E-Commerce
According to a study conducted by the Brazilian e-commerce association ABComm, Jadlog is the most used private transport service provider in Brazilian e-commerce. The DPDgroup E-Shopper Barometer[1], conducted between May and June 2019 in Brazil, revealed two key trends:
- The Brazilian e-commerce market is heavily concentrated on heavy e-shoppers. They shop online regularly and make up about 16% of Brazilian e-shoppers – but are responsible for around 62% of all orders.
- Brazilian e-shoppers expect real-time information and flexibility from their delivery. Additionally, 75% find it extremely important to know which service provider will be responsible for the delivery at the end of the order.
“Jadlog has consistently grown and is expanding particularly in the Brazilian e-commerce sector, which is becoming increasingly strategic every day. The company has confirmed our positive expectations that we had at the closing of the partnership. We will continue to improve our performance in the B2B market while also working to expand our business in e-commerce. We already have a strong market position today,” says Olivier Establet, CEO of Jadlog.
Based on extensive investments, Jadlog is continuously working to offer merchants additional services and consumers more delivery options. In 2019, over 1 million orders were delivered through Jadlog’s parcel network. This includes around 3,000 drop-off points across Brazil. By 2021, this number is expected to reach at least 6,000.
During the last four years with GeoPost/DPDgroup as a shareholder, the parcel volume at Jadlog has increased sixfold. In 2020, Jadlog established itself as a key player in the logistics segment during the COVID-19 pandemic, being able to respond to the needs of customers and consumers. This led to a doubling of revenue in the first half of the year.
Additionally, the company has set up a COVID-19 fund to support delivery personnel and the franchise network during lockdowns. Approximately 500,000 Real (about 80,000 Euros) is intended to help franchisees and delivery personnel overcome rising costs and difficulties associated with the pandemic. At times, delivery prices were also increased to respond to regional prevention and control initiatives. Another fund is aimed at supporting delivery personnel who must go into quarantine or cannot work as usual due to belonging to a risk group.
A Connection to the Rest of the World
At a national level, Jadlog operates with more than 500 franchisees and 17 branches, serving over 40,000 recipients. “We have consolidated our operations in the B2B segment and are very optimistic about our business prospects. In the last two years, we have doubled our business volume 
. We want to offer safer and faster services based on optimized processes,” says Bruno Tortorello, CEO of Jadlog.
The Jadlog network is connected to DPDgroup’s international parcel network. This international network greatly expands Jadlog’s offerings and gives Brazilian customers access to the global market. Merchants also benefit from this, as findings from the DPDgroup E-Shopper Barometer show that 58% of regular e-shoppers have already imported items, particularly from China and the USA.
Former Jadlog CEO Alfonso Davo remains a shareholder of the company with 2% of the shares. “Alfonso Davo is the founder of the company, so he will continue to be an important stakeholder in the future,” says Olivier Establet. “I am confident that Jadlog will continue to develop positively with the support of DPDgroup,” emphasizes Bruno Tortorello. To express the partnership, Jadlog adapted the red cube of DPD branding back in 2018.
[1] This is an online survey conducted in collaboration with GfK. A total of 1,001 Brazilian e-shoppers over the age of 18, who had ordered physical goods online and received them as parcels since January 2019, were surveyed.
Photo and graphics: © DPD Group
