The Zoom2u Technologies Ltd (ASX: Z2U) share price has had a miraculous day.
Shares in the parcel delivery platform stormed more than 19% higher in late afternoon trade today after announcing a new contract.
Let's take a look at why investors are flocking to get their hands on shares in Zoom2u.
Telstra deal fuels Zoom2u share price
Shares in Zoom2u rallied late in today's session after announcing a contract agreement with Telstra Corporation Ltd (ASX: TLS).
As covered by my Foolish colleague earlier, the telco giant is now offering two-hour deliveries in certain areas of Australia.
Telstra has nominated Zoom2u's platform as the courier partner to deliver products from stores directly to its customers.
The service will begin with 25 participating Telstra stores in Sydney, Melbourne and Brisbane metro.
Zoom2u noted that Telstra is under no obligation to meet any minimum volume or fee commitments and the arrangement is not exclusive.
As a result, Telstra's use of the company's courier platform cannot be quantified as it is dependent on delivery volumes.
After opening the day at 70 cents, the Zoom2u share price tanked to hit an intra-day low of 57 cents.
Following the announcement, shares in Zoom2u rallied more than 40% to hit an intra-day high of 80 cents.
More on the Zoom2u share price
Shares in Zoom2u listed on the exchange almost 2 weeks ago via an oversubscribed IPO of 20 cents.
The delivery service company has two key operating businesses that look to capitalise on the increased outsourcing of delivery services.
Zoom2u is the company's largest segment platform that connects customers with local drivers.
Locate2u is its second business launched in late 2020 that offers customers a software as a service (SaaS) product.
The company currently has a customer base of nearly 70,000 individuals, SMEs, and enterprise customers who are connected to more than 8,600 drivers.
Late last week, Zoom2u made headlines after announcing the signing of its first enterprise customer for its Locate2u platform.
Zoom2u revealed it will provide Amart Furniture and Bing Lee access to its SaaS platform Locate2u for a 24-month term.
At market close, shares in the delivery platform company ended the day 7.46% higher at 72 cents.
Shares in Zoom2u were up more than 19.4% earlier after hitting an intra-day high of 80 cents.
