Introduction
The collapse of Huboo Technologies Limited (now Hub Realisations Limited Company number 09727464) shook the eCommerce fulfilment industry, leaving businesses, suppliers, and investors counting their losses. What lessons can companies learn from this disaster to avoid making the same mistakes?
Key Takeaways for eCommerce Businesses
Don’t Trust Every Fulfilment Company’s Claims
Huboo marketed itself as a fast-growing fulfilment leader, but it was losing millions every year.
Companies should verify financial stability before committing to a provider.
Have a Backup Plan
Many businesses had no alternative fulfilment strategy when Huboo collapsed.
Always have multiple logistics options to avoid last-minute panic.
Watch for Financial Red Flags
Huboo’s 2022 losses were £47.1 million on just £17.7 million revenue.
If a company is burning cash faster than it’s making money, it’s a risk.
Transparency Matters
Huboo never warned customers about its financial struggles.
Businesses should demand transparency from their fulfilment providers.
Conclusion
The downfall of Huboo is a cautionary tale for eCommerce businesses. If you don’t carefully vet your fulfilment provider, you could be left in the same position as Huboo’s stranded clients.
