PRESS RELEASE: Zappy Warns Sendle Shutdown Reduces Competition, Puts Pressure on Ecommerce Deliveries and Consumers
Sydney, Australia – 12/1/2026
The shutdown of Sendle’s operations has created an immediate challenge for thousands of small businesses — but industry experts warn the long-term impact could be even greater: reduced competition in Australia’s parcel delivery market.
Zappy CEO Jimmy Wu says the loss of a major courier provider risks pushing more volume back toward Australia Post, strengthening what is already a dominant market position.
“Competition is healthy for consumers and for ecommerce,” Mr Wu said.
“When one major provider exits suddenly, it doesn’t just disrupt deliveries — it reduces choice, drives up pressure on remaining networks, and risks creating a heavier reliance on a single dominant carrier.”
According to Australia Post’s own publications, around 11% of all retail purchases in Australia are made online — a figure that remains significantly lower than other developed markets, where ecommerce penetration typically ranges between 20% and 30%.
Mr Wu believes the gap is not due to lack of consumer interest, but structural constraints in the delivery ecosystem.
“Australia doesn’t have a demand problem — it has a logistics bottleneck,” he said.
“When deliveries are smooth, reliable, and competitively priced, customers buy more, businesses grow faster, and the entire economy benefits.”
Less Competition = Higher Risk for Consumers and Businesses
With Sendle no longer operating, the courier landscape tightens, raising concerns about:
- Higher delivery prices
- Longer delivery times during peak seasons
- Reduced innovation in the sector
- Fewer service options for small businesses
- Increased pressure on Australia Post’s already stretched network
“A healthy ecommerce industry depends on a diverse, competitive logistics network,” Mr Wu said.
“When market concentration increases, consumers ultimately pay the price — through slower delivery, fewer choices, and reduced service standards.”
Zappy Steps In, but Stresses Industry Collaboration Is Needed
Zappy, which operates a multi-carrier delivery platform, has expanded its support capacity to assist disrupted Sendle customers.
However, Mr Wu cautions that no single provider can solve the industry’s structural challenges alone.
“We can help businesses transition quickly and keep their parcels moving — but the broader issue requires industry-wide cooperation,” he said.
“Technology platforms, courier partners, retailers, and industry bodies all need to work together to ensure Australia maintains a competitive, resilient delivery ecosystem.”
Protecting the Future of Australian Ecommerce
Mr Wu emphasised that maintaining reliability in deliveries is essential not only for individual businesses, but for the long-term growth of online retail nationwide.
“When deliveries stay reliable, customers keep shopping, businesses keep growing — and ecommerce strengthens as a whole,” he said.
“That’s what we’re here to protect. Not just for today’s disruption, but for the future of the industry.”
Businesses seeking delivery support can visit www.zappy.au or contact sales.au@shipzappy.com