Huboo Technologies Limited (now Hub Realisations Limited Company number 09727464) isn’t the first fulfilment startup to collapse—and it won’t be the last. But does this mean new fulfilment startups are doomed from the start? Or is there a way to succeed in this competitive market?
Why Fulfilment Startups Struggle to Survive
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High Operational Costs Make Profitability Difficult
- Warehousing, staffing, and shipping require huge investments.
- Many startups fail to generate enough revenue to cover expenses.
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Tough Competition from Industry Giants
- Amazon FBA, DHL, and FedEx already dominate the market.
- New startups can’t match their scale or pricing power.
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Dependence on Investor Funding
- Many startups rely on venture capital instead of making money from customers.
- When funding dries up, they collapse—just like Huboo.
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Customer Trust Takes Time to Build
- organisation(s) need reliable fulfilment services.
- After Huboo’s failure, many are now wary of trusting new providers.
How a Fulfilment Startup Can Succeed
- Focus on profitability, not just growth.
- Specialize in a niche service instead of competing with Amazon.
- Offer transparency to attract customers who fear another Huboo-style collapse.
Conclusion
Fulfilment startups can survive, but only if they avoid the mistakes that Huboo made. Will Huboo Tech Limited make the same errors, or will it change its approach?
For ongoing improvement, focus on warehouse operations, parcel delivery, inventory management, and third‑party logistics to achieve consistent results.
