Panama’s smart locker startup Boxit expands to Brazil

Contxto – A new alternative to purchasing and receiving goods from the web has emerged. Betting on Smart Lockers instead of home delivery, as the current trend dictates, Boxit has proposed a new option for the Brazilian eCommerce market.

Almost there but not quite

Born in Panama, Boxit is a startup that allows users to purchase goods and items from external vendors such as Amazon and Walmart. What it does differently, though, is how it reduces the burden of delivery. 

Many of us have been there. There’s a new Amazon product that we want to buy at any cost, regardless of delivery time. Once it arrives at your country, though, you still have to sit down and wait until the delivery guy even hits the round. Boring and excruciatingly unpredictable. 

Boxit’s goal is to remove human interaction altogether by storing the product in a highly secured locker. Users can then proceed to pick up their package whenever they need, 24 hours a day. By paying with either cash or card, users can unlock the locker and leave contently with their newest acquisition.

These devices are located in various points across Panama City to maximize convenience for users. Currently, with seven lockers all throughout Panama, the company finally decided to jump abroad and expand into Brazil.

Small origins, big goals 

The startup is looking to expand its reach and scalability for its Brazilian landing. For this reason, it partnered with Malex Do Brasil to install lockers at their locations. Founded in 1976, and with more than 140 spots across Brazil, it is definitely a great partnership for the young company to start with. 

Not only is Boxit helping people access the eCommerce world by enabling cash payments, but it is also helping entrepreneurs find new ways of delivering their products. This makes online purchasing more inclusive even for the unbanked and offers a growth alternative for one of the industry’s oldest limitations: logistics. 

As a result, this has turned the company into a “Paycash eCommerce” leader across the region.

With online commerce growing annually at 18 percent, the rate of failed deliveries is also rising. Because of this, delivery costs for companies are increasing up to threefold. As Uncle Ben would say, with great power comes great responsibility.

Last-mile delivery can also benefit from this. By reducing traveled distances, ensuring the delivery gets completed and outsourcing the payment gateway, these companies can lower risks while still growing in delivery volume.

Winning

Allegedly, the company is considered one of Latin America’s most innovative companies as of today. It took part in the Google Launchpad acceleration, representing all of Central America. Also, starting June, it was chosen as one of the five finalists from the 1,700 nominated startups for Innovation Awards Latam 2019. 

Currently it is partially operating in Mexico and Colombia through B2B partnerships. However, it is fully functional in Panama and has already set its eyes on the big Brazilian titan.

Brazil is currently the world’s 10th largest market in terms of eCommerce volume. Safe to say that this is definitely a strategic move worth exploring.

What’s interesting, though, is the counterintuitive approach to a rising trend. Contrary to home delivery, which seems to be the norm nowadays, Boxit intends to explore the self-service initiative. I believe it certainly has potential, but with the sea of comfortable alternatives in the market, competition is definitely going to be fierce.

-VC