Sierra Trading post standard is getting a post office couriers service, a deal that will give the small shipping company a more direct connection to customers, post office executives say.
The post office is expanding its Courier Mail network and will offer more than 3,000 post office locations by year’s end.
Sierra Trading, which has a fleet of about 200 trucks, says it will offer a service that will make the post office more efficient and competitive with FedEx, which operates an entire fleet of courier companies, as well as other international mail companies.
Sierra’s Courier Mail service will cost Sierra Trading $250,000 a year, and will be delivered via truck to customers in the Sierra Trading Standard Post Office (SSPO) network in Kenya.
The company is the second courier company in Kenya to get a post service from the Sierra Post Office, which is the post service of the Sierra African National Union (SAANU).
Sierra Trading is the third courier company to get post service since the SAANU took over the post offices.
Sierra will pay Sierra Trading the same amount of money it pays FedEx for its service, which includes a one-time fee of $20.
Sierra also said it will provide free delivery for Sierra Trading customers in Kenyans, Sierra Trading executives said in a statement.
Sierra is a global shipping company.
Sierra, which employs about 40 people, said it plans to use a combination of trucks, equipment, human drivers, and logistics experts to expand its delivery services in Kenya and other countries.
Sierra shares were up $1.18, or 2.4%, at $37.68 in premarket trade.
Sierra said its deliveries of Sierra Trading posts will be more efficient than FedEx’s delivery service, and it will use the delivery trucks it has in its fleet to deliver Sierra Trading mail.
Sierra trading standard has about 4,500 locations in Kenya, Tanzania, South Africa, and Zambia.
Sierra was founded in 2002 by a pair of engineers from Sierra Trading.
The Sierra Trading standard post office operates a fleet that includes about 2,400 trucks.
The SSPO has more than 600 truck locations.
Sierra Shipping, which also has a presence in Kenya as part of its Courier-Mail service, said in its statement that it will pay about $75,000 annually for the Sierra trading post standard service.
Sierra shipped about $8.2 billion of Sierra trading posts in 2016, the most in the world, according to the company.