Zalando turns to Uber and technology to reach €10bn in sales

By

Cajsa Lykke Carlson

Published
Mar 22, 2016

Retail and technology are becoming more and more intertwined, as etailers are vying for customers' money and attention.

Amazon is extending its European fashion business and Yoox Net-a-Porter Group is signing a deal with IBM, proving that to be a successful etailer, you have to be constantly developing your technology. Now reports say that Zalando, the German etail giant, could sign an alliance with Uber, the ride-hailing service that is edging out traditional taxis.

A deal between the two could make it easier for Zalando to manage deliveries and for customers to return unwanted merchandise. The etailer is also looking into a number of other initiatives to boost its profitability and reach its aim of €10bn in sales by early next decade. One of these is building a new system to make it easier for other brands, like Adidas and Nike, to sell through Zalando's site.

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The global express and small parcels market has been transformed by ecommerce, with alternative delivery solutions like click and collect having an impact on the industry. Zalando has developed its own software for displaying clothes online and coordinating the flow of goods among warehouses, to gain an advantage in the market.

The global ecommerce logistics market is projected to grow at a rate of 9.69% by 2020, and fashion goods is a key market driver. The sale of luxury items or "luxury e-tailing" is set to grow by 14.28%.