ParcelPal: Revolutionizing The On Demand Economy

ParcelPal: Revolutionizing The On Demand Economy

2018 was a banner year for the legal cannabis industry and 2019 should be that much more significant.The cannabis sector recorded enormous growth the past year; and this is a trend that’s expected to last for quite some time.

We have been closely following the cannabis business and have been concentrated on targeting businesses that are underappreciated and well positioned for expansion. Today, we want to highlight ParcelPal Technology Inc. (PKG.CN) (PTNYF) which meets this criteria and is definitely worth watching.

ParcelPal provides on-demand local delivery services in North America. The company has strategic relationships with significant global conglomerates in addition to major Canadian cannabis retailers. ParcelPal has substantial growth prospects and transactions at an attractive valuation.

In late November, ParcelPal published third-quarter financial results that demonstrated impressive growth and we’re positive on the growth prospects going forward. During the quarter, the business generated more than $800,000 in revenue and is well positioned to see substantial growth from here.

Focused on the Cannabis Market and Forms Relationship with Choom

ParcelPal’s arrangement with Choom will advance distribution to various retail outlets in Canada. The initiative will include:

  • Distribution: ParcelPal and Choom will jointly develop the perfect roadmap for distribution in various provinces for adult use cannabis.
  • Accessibility: Using Choom’s and ParcelPal’s platform to enhance user experience and accessibility to products offered.
  • Safety: ParcelPal and Choom are dedicated to public safety by allowing safe access to product for consumers through an instant delivery channel with the objective to eliminate impaired driving.

We’re positive on this relationship and believe that each company adds tactical capabilities to the partnership. ParcelPal would like to be the Uber of cannabis for Canada and believe that Choom will enhance the organization ’s national cannabis distribution and distribution strategy. This represents a significant opportunity and will be a enormous revenue driver for the businesses, if successful.

Choom has a strategic relationship with Aurora Cannabis (ACB.TO) (ACBFF), whereby Aurora owns a substantial part of Choom and this may be a significant catalyst for ParcelPal. The business has significant growth prospects because of its relationship with Choom and this is an opportunity that investors need to be watching.

In the Middle of a Major Expansion

During the last year, ParcelPal has been implementing flawlessly on a multi-faceted expansion strategy and has successfully delivered more than 1.5 million packages. This is important for a business that’s at the early stages of its growth cycle and for that we expect to see incremental growth over the next year.

Among the areas in which ParcelPal has exceled is with strategic partnerships. The relationship with has been a significant catalyst for growth and we’re positive on the focus on expansion. The business has a contract with for Vancouver, British Columbia and Everett, Washington and has expanded its footprint significantly.

In the latest company upgrade, CEO Kelly Abbot announced that the company has partnered with and invested in TokeIt (Centreel Systems) for the distribution of cannabis. We’re positive on the focus on the cannabis sector and the distribution side of the business represents a significant opportunity.

ParcelPal ended 2018 on a high note and this leaves us excited for the year ahead. The company closed the year with a run rate of over 3.5 million. ParcelPal is always executing on its strategic plan, bringing potential partnerships, and looking at additional town expansions. This represents a significant chance for the company, and we’re monitoring how the team executes from here.

A Company With Significant Growth Potential

With ParcelPal, there are countless opportunities for evolution and revenue diversification within the on-demand delivery market. The business is well capitalized and has been reinvesting in its technology platform, and it has begun to scale its service across Canada in addition to the United States.

ParcelPal is in the middle of a significant expansion and recently launched operations in Saskatoon and Calgary, two new markets around the west coast of Canada. The business plans to create a substantial presence on the east coast of Canada as well and we will track how this process goes. ParcelPal intends to pursue a number of technologies, products and marketing initiatives to continue to drive additional growth in 2019. The Provider’s strategic priorities include:

  • Grow monthly recurring revenues by engaging new and acquired clients.
  • Continue to launch multiple delivery verticals within the program.
  • Capitalize on various opportunities over the cannabis industry
  • Further increase the technology platform and offer ParcelPal on multiple platforms
  • Broaden ParcelPal’s geographic footprint across Canadian cities
  • Continue leveraging its partnership with Amazon across North America

An Chance to Watch

When looking at cannabis providers, it is important to evaluate the management team and focus on businesses that are led by a team that’s oreiented towards growth and on generating value for investors. ParcelPal is led by a strong management team and the company recently enhanced the team through strategic additions.

ParcelPal is well capitalized and well positioned to execute on expansion focused initiatives and this is an important feature of the story. Parcel Pal ended the year with more than $2 million in working capital which will allow for an 18 months expansionary run speed without needing to raise additional capital. This is important and we are positive on the organic growth opportunities.

ParcelPal has a strategic relationship with and has been successful in expanding its footprint in North America. This is a business that we will be monitoring closely and if you want to learn more, please contact [email protected].

Posted in: News

Comments are closed.