"Nova Poshta: The Story of Ukraine's Most Successful Delivery Service"

Brand Stories & Strategies Transportation & Logistics Business Ideas 13.03.2016  0 747 0
"Nova Poshta: The Story of Ukraine's Most Successful Delivery Service"

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In today's European delivery service market, the logo of the express delivery company "New Post" is widely recognized among most Ukrainians. When it comes to choosing a mail service, residents of Ukraine unequivocally prefer the services of this company. Witnessing the success with which "New Post" operates in modern times, it's hard to imagine the monumental effort that went into creating this efficient transport system. Let's explore how a simple business idea was able to lead to the establishment of a giant in the Ukrainian logistics sector.

The Emergence of the "New Post" Concept

The express delivery service we are discussing would never have come to fruition if its two co-founders had not shared a room in a dormitory at the Kharkiv Aviation Institute. It was during this time that their friendship blossomed. To this day, Vladimir Popershniuk and Viacheslav Klimov consider the successful blend of friendship and partnership to be the cornerstone of their business. Through the success of their company, these two businessmen debunk the notion that "friendship and business are incompatible."

Upon graduating from university, the friends temporarily went their separate ways to their hometowns and embarked on careers in different fields: Viacheslav worked as a designer at the "Aviant" plant in Kyiv, while Vladimir worked in the family confectionery business in Poltava. During this period, the future businessmen gained valuable experience observing business processes from within and maintained their friendly bond. After some time, the friends gathered determination and began to consider the possibility of starting their own business. This was in 2001, a time when many market niches were unoccupied, competition was minimal, and the barrier to entry into business was very low. It was a golden opportunity for realizing new business ideas, and the future partners skillfully capitalized on this advantage.

The field of express transport was chosen for a reason - at that time, intercity delivery in Ukraine was severely lagging behind. The state post service worked slowly and poorly. The only alternatives were delivery through conductors or bus drivers. However, this option was inconvenient for senders and recipients, with no guarantee of cargo safety. Therefore, the friends had to identify the needs of potential clients and dive into action.

The Rise of "New Post"

The initial years of the fledgling business resembled a true adventure. The friends lacked practical experience in running their own business, had no concept of organizing business processes, and the target audience did not yet understand the need for such services. Nevertheless, they possessed considerable energy, flexible minds, and a starting capital of $7,000. Surprisingly, this proved to be sufficient for creating their transportation empire.

Exploring the international express transport market revealed that the sphere could yield immense profits and had significant potential in their country. The decision was made to launch operations, and the starting point for "New Post" became the rental of three offices in Kyiv, Kharkiv, and Poltava. At that time, the company had only eight employees, including three co-founders.

The initial period was focused on cold-calling potential enterprises that might be interested in "New Post" services. Interestingly, the offered services were not innovative, such as night delivery or office relocations, but rather basic delivery of letters, parcels, and goods "from door to door." Yet even such a simple service struggled to attract clients, as companies and entrepreneurs failed to see the value in paying for shipping when traditional methods like trains or buses were available.

The first order involved delivering an envelope with correspondence from Kharkiv to Kyiv. Since the company did not yet have its own fleet, the envelope was transported by train, with a postal worker delivering it to the recipient. Gradually, new clients emerged, but for the first three years, "New Post" teetered on the brink of survival, and its founders went without salaries. Throughout this period, the company gradually expanded its presence in the Ukrainian market - one of the founders would travel to a new city, establish an office, hire a low-paid employee designated as the branch director, and commence operations in that region. This pattern repeated until the branch network covered most major cities in the country. At that time, "New Post" had few major clients, primarily handling smaller shipments. Interestingly, the company often operated at a loss deliberately to build a positive reputation with clients.

The Business School - A Turning Point in the Development of "New Post"

A pivotal moment was the commencement of Vladimir Popershniuk's education at the international business school, Executive MBA. By this time, corporate clients had emerged, bringing not only substantial revenue but also challenges related to heightened service quality demands. Additionally, with the company's rapid growth, internal process management became increasingly complex. A new approach to business was needed, and education provided the key.

During these courses, Vladimir gained invaluable knowledge and connected with the first truly significant client - the manager of the "MobiloChka" store network. This collaboration changed everything - "New Post" began facing real challenges that led to business reorganization. For instance, "MobiloChka" demanded that phones purchased on their website be delivered anywhere in the country by noon. Initially deemed unfeasible, a solution was found after a month of brainstorming. Later, the same major client requested a 30% discount - surprisingly, it was achievable while maintaining profitability.

Subsequently, the company encountered various challenges: the arrival of powerful competitors with foreign capital in 2005, the 2008 crisis, a surge in orders exceeding "New Post's" capacities, and more. Yet, each time, the leadership found unconventional solutions, strengthening and expanding the business even further.

"New Post" as of 2016

Today, the company has evolved beyond a simple express delivery service. It provides outsourcing of logistical services, offers cash transfers through ForPost cash desks, and operates in the format of fulfillment services. "New Post" is now Ukraine's largest postal company, having completed 100 million shipments in 2015 alone. The entire history of this business illustrates how a successful business idea, modest startup capital, and ample enthusiasm can lead to remarkable success.

If you found the story of "New Post" intriguing, share it with your friends - perhaps leaning on it, they too can achieve success in business.

Want more practical business ideas for the US market?

👉 Follow us on Facebook for daily ideas and tips.

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13.03.2016  0 747 0
Service Industry Business Ideas Transportation & Logistics Business Ideas
Brand Stories & Strategies Success Stories
Новая почта служба доставки курьерская компания Владимир Попершнюк Вячеслав Климов
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