Zoom2u (ASX:Z2U) share price soars 19% amid Telstra contract news

Shares in Zoom2u were up more than 19.4% earlier after hitting an intra-day high of 80 cents.

| More on:
A delivery driver leans on boxes in his van as he puts his thumb up.

Image source: Getty Images

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.

Should you invest $1,000 in Zoom2u Technologies right now?

Before you consider Zoom2u Technologies, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Zoom2u Technologies wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

Share Gainers

Why did the Dubber share price push 18% higher today?

Dubber shares have bounced from yearly lows.

Read more »

Two workers on site discuss the next stage of this civil engineering job, one points his hands upwards.
Share Gainers

Why did this ASX nickel share surge 23% today?

Investors keep rewarding ASX listed metals and mining companies in 2022.

Read more »

Share Gainers

Why BlueScope, Firefinch, Monash IVF, and South32 shares are pushing higher

These ASX shares are on form on Wednesday...

Read more »

Five happy miners standing next to each other.
Share Gainers

3 ASX mining shares surging more than 10% today

Metals and mining stocks continue to be rewarded in 2022

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop regarding the NRW share price
Share Gainers

Why these 2 ASX All Ordinaries shares are surging more than 20% today

Two ASX technology shares are leading the charge higher today.

Read more »

Rocket powering up and symbolising a rising share price.
Share Gainers

The Galileo Mining share price has rocketed 380% in a week. But this billionaire is still buying up big

The upside continues for the Galileo today.

Read more »

A laughing woman wearing a bright yellow suit, black glasses and a black hat spins dollar bills out of her hands signifying the big dividends paid by BHP
Share Gainers

Who wants to be a millionaire? If only you’d invested $10,000 in these ASX shares 10 years ago

You won’t believe how much you would have pocketed if you had bought these shares a decade ago.

Read more »

Rising share price chart.
Share Gainers

Why BlueScope, OFX, Pilbara Minerals, and Step One shares are pushing higher

These ASX shares are pushing higher...

Read more »