CMA CGM taps startup to deepen e-commerce reach

CMA CGM taps startup to deepen e-commerce reach

CMA CGM wants to bring last mile logistics and solutions for e-commerce sellers into its CEVA-led portfolio of services. Photo credit: Shutterstock.com.

Supporting its effort to provide tailored solutions to cargo owners via its recent acquisition of CEVA Logistics, CMA CGM is investing in a startup providing e-commerce logistics to small and medium sellers.

CMA CGM, based in Marseille, will also simultaneously forge a commercial partnership between fellow French company Wing and CEVA, its wholly owned third-party logistics provider (3PL). Wing offers an online platform where e-commerce sellers can have couriers pick up orders and deposit goods in a logistics warehouse to be packaged and shipped, promising delivery worldwide within 48 hours.

The model parallels a number of such startups in North America such as ShipBob, ShipStation, and ShipHawk. Those companies variously provide warehousing and shipping functions or connectivity platforms that link e-commerce sites, such as Shopify and Magento, with couriers and integrators. Wing says it integrates with Shopify, Magento, WooCommerce, PrestaShop, and Etsy.

Wing currently operates out of four French cities — Paris, Marseille, Bordeaux, and Lyon. CMA CGM said CEVA will provide Wing with warehousing space, while the two companies will engage in “cross-selling initiatives.”

Broadened logistics services

The move furthers CMA CGM’s attempts to provide an array of logistics services beyond port-to-port vessel operation. The container line in April rolled out a new online platform for digital transactions, while it has been working with CEVA to bundle products in a way that places it in more direct competition with non-asset-based 3PLs.

“A concrete illustration of the synergies between CEVA Logistics and CMA CGM resulting from our new strategic plan, this collaboration with Wing is fully in line with Rodolphe Saadé's ambition in favor of digital innovation,” CEVA CEO Nicolas Sartini said in a statement.

Wing was founded in 2015 and currently serves 300 customers. The container line’s investment comes via its venture capital arm, CMA CGM Ventures. Terms of the investment were not disclosed.

Contact Eric Johnson at eric.johnson@ihsmarkit.com and follow him on Twitter: @LogTechEric.