Google invests in logistics startup Lori Systems
TechCrunch reported that Google had invested in Lori Systems, a new African logistics, which will boost its market value after the Series B financing.
Lori Systems was officially founded in 2017, co-founded by Josh Sandler, Jean-Claude Homawoo, and Ernest Gichini Ngaruiy, with Kenya as a development base. In the beginning, it mainly developed in eastern Africa, and now it is expanding its business to Nigeria in western Africa and the South African market in the south. The market value in 2020 is about $110 million.
Currently, Lori Systems provides services that allow users to easily book freight logistics services through their mobile phones, and deliver freight by large trucks. According to the description, the amount of transportation costs in Africa is as high as more than 180 billion US dollars each year, and logistics account for more than 70% of a product’s price. But this ratio is almost only 6% in the US market, so the same goods are likely to become expensive in different parts of Africa, and Lori Systems hopes to improve such problems.
Therefore, Lori Systems hopes to match the delivery demand of goods through mobile phones, so that goods can be traded in the market at a more reasonable price, so it also attracts investment from institutions such as Google. It is believed that it will assist the digital transformation of the African market and bring greater development possibilities.
Google has not announced the actual amount of the investment, but it has announced that it will expand its investment in the African market with greater potential development opportunities.