Shares of NxGen Brands Inc. (OTCMKTS:NXGB) closed lower in the previous session.
Market Reaction
On Friday, NXGB stock fell 12.50% to $0.14 with 22k shares, compared to its average volume of 7.4k shares. The stock moved within a range of $0.1400 – 0.1700 after opening trade at $0.17.
Online Marketplace and Rapid on Demand Local Delivery Services
NxGen Brands Inc. (OTCMKTS:NXGB) has officially begun beta testing for SendPut Networks on February 18, 2022. SendPut leverages local retailers as its inventory and fulfillment network core, while forging partnerships via its online inventory and marketplace platform. The company has adopted this approach as other players are focusing on city-based dark stores or ultra-centralized warehouses.
SendPut’s model works wonders for boosting reach and range of rapid delivery platforms, while opening up new opportunities for SMBs. SendPut creates networks of existing retailers, and expands its reach into zip codes where current standalone dark store and delivery network models would not prove to be economical.
On the customer delivery side of the network, the company is majorly focused on developing a network of secure pickup/dropoff lockers for SendPut. It works with logistics platforms for coordinating retailer-driven fulfillment with excess capacity in existing driver networks. Thus, they are able to complete tasks within ultra-rapid delivery timeframes, and compete with fast-delivery models as well.
Creating local many-store networks helps to expand the range of products available to customers through such rapid-delivery online marketplaces. The company will also ensure the end-customer doesn’t have to shell out extra to benefit from SendPut’s delivery network and product availability.
Key Quote
Angel Burgos, CEO of NxGen Brands Inc., said, “SendPut’s design is excellent, allowing multiple business models that can continue to create revenue streams for the company, all while minimizing the capital outlay. This stands in contrast to most of the mainstream delivery companies, who are establishing themselves and competing in high-density urban areas with significant investments in dark warehouses and unmarked locations to deliver in 30 minutes or less. We have found that this business model is unpractical and unnecessary in most situations that require delivery.”
Traders Review
NXGB stock is trading below the 20-Day and 50-Day Moving averages of $0.14 and $0.15 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.21.
