The IOT Group (ASX:IOT) has expanded its Internet of Things (IoT) product line with an investment in on-demand delivery service, RUNA.
Available on your smartphone, the service offers pickup, purchase and delivery of multiple items — anything from a bottle of wine and a ‘Maccas’ burger, to a gas bottle, hammer, or medications.
RUNA has already been rolled out in Sydney’s Eastern Suburbs and Northern Beaches and will be available in all Australian capital cities later this year.
The platform is available on the Apple Store, Google Play Store, with IOT looking to expand its reach into Hong Kong, Singapore, Japan and Malaysia.
Since its start in early 2015, RUNA has successfully made over 3000 deliveries and has recently completed six months of controlled beta trialling and agile improvements.
The brains behind IOT were also behind Australia’s fastest growing business in 2010-2011, which grew to $480 million in revenues and the 47th fastest in US in 2015.
The good news for IOT is that RUNA could have similar traction as it operates in the on-demand economy, predominantly in fast food deliveries which in Australia are forecast to grow by US$1.5 billion (A$1.9B) over the next four years to almost US$2.8 billion (A$3.6B). Assuming $20 per delivery, this equates to a delivery market of 140 million fast food deliveries alone each year by 2021.
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While RUNA is some major news, let’s not forget the roll-out of IOT’s flagship product AirSelfie, which has been updated and now delivers better performance and top-level user experience with greater usability, efficiency and power.
In recent months, IOT has expanded its global distribution network into the lucrative Latin/South American (LATAM) market, building on the company’s already impressive distribution network that includes major distributors, the likes of Amazon and BestBuy.
IOT now has exclusive distribution rights for the US, Australasia, and Latin America and expect its products to be made available in ‘most retail outlets’ this year which could have a significant impact on its low $3 million market cap.