Fulfilling e-commerce orders by pipes
Magway, a British startup, is building a fully operational pipe system to deliver online orders.
Delivering e-commerce parcels from large distribution centres is not the most efficient process in logistics. Many companies have tried to find a better solution and some have turned to the idea of using pipes to transport orders and bring them closer to customers. Magway, a British startup, is working to bring a fully operational system that will connect large facilities with city hubs through pipes thus speeding up deliveries and protecting the environment.
Based in London Magway is a startup that takes dealing with the middle mile very seriously. Phill Davies, co-founder and commercial director, says that what the company is doing could transform the way people receive their online orders. The idea to transport goods via pipes is not new and several companies have tried it out. What makes the British firm different is that it is in the process of building a fully operational system. ‘The part of the value chain that we are focused on is broken bulk,’ says Phill. They would not restock warehouse but deliver goods closer to their final destination.
A better way
Rupert Cruise, the other co-founder and technical director of Magway, has worked in the space of linear motors for his entire career. The technology is considered by the startup as their core asset and Rupert has provided solutions in the area for deep mining companies, the US Navy and multiple aircraft carriers. In 2013 the interest towards Hyperloop brought new customers to Rupert who gave advice to Virgin Hyperloop One about linear motors, traction, breaking and levitation systems. ‘We met on an entrepreneurs program. I have been working on the other side of the business on reverse logistics, on e-commerce. So I have seen the explosion of goods coming back to businesses,`` explains Phill. He remembers a time when he ordered three items from the same vendor and they all were delivered individually. This has left Phill wondering if there was a better way of servicing the middle and last mile.