Descartes acquires Melbourne-based Localz as part of final-mile expansion

Taking steps to continue to invest in its final-mile service offerings, Waterloo, Ontario-based Descartes, a provider of logistics based on-demand, software-as-a-service offerings, recently announced it has acquired Melbourne, Australia-based Localz, a technology platform to help engage with customers on the day they’re having goods or services delivered.

The purchase price was approximately $6.2 million, according to Descartes officials.

The company said that the Localz platform combines real-time vehicle location tracking and communications to deliver safe, transparent, customer-centric SaaS solutions that transform the customer delivery experience. And it added that Localz’ end customers can schedule services and deliveries through an online portal, and then follow the progress of their order in real-time with advanced notifications built in. Localz also helps retailers provide a premium, highly efficient “click-and-collect” solution that improves the in-store collection process, it said.

“Descartes continues to invest in final-mile solutions to help our customers offer cost-efficient delivery services that transform the end customer experience,” said Ken Wood, EVP of Product Management at Descartes, in a statement. “By combining with Localz, we’ve expanded our capabilities so our customers can further differentiate themselves in a highly-competitive final-mile delivery market where delivery excellence is a must-have.”

When asked what drove the need for this acquisition, a Descartes spokesperson told LM that Descartes recognizes the value of allowing its customers to share delivery appointment lifecycle information with their customers.

“We have made internal investments in ‘customer engagement’ solutions for our customers and, with Localz, saw the opportunity to accelerate our efforts,” she said. “We were familiar with Localz and when the opportunity appeared recently to combine, both sides moved quickly to make it happen.”

The spokesperson added that similar to some of the company’s recent acquisitions, such as Foxtrot in 2022, it was already providing solutions in this (final-mile) area but felt that it could move much faster than organically building out the customer engagement solutions.  What’s more, she said it also gives Descartes greater critical mass in terms of resources and expertise in delivering customer engagement solutions, and that Descartes customers can expect broader and deeper functionality in tracking and managing delivery appointments as well as addressing their needs for click and collect solutions.

“Descartes continues to expand its solution footprint for distribution and home/last mile delivery customers to help them transform their operations,” she said. “Customer engagement is becoming increasingly important for our customers as they look to differentiate themselves with their customers. Localz fits nicely with our industry-leading appointment scheduling, planning and execution solutions.”