DISPATCH MANAGEMENT SERVICES CORP.

DISPATCH MANAGEMENT SERVICES CORP.

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Company Overview
Dispatch Management Services Corp. (DMSC) is a US-based company formed to create one of the largest providers of urgent, on-demand, point-to-point delivery services in the world. DMSC focuses on point-to-point delivery by foot, bicycle, motorcycle, car, and truck and operates in 25 of the largest metropolitan markets in the United States, as well as the United Kingdom, Australia, and New Zealand.
DMSC provides a comprehensive range of urgent courier services. In providing urgent delivery services, the company’s messengers respond to unscheduled customer requests for immediate pick-up and delivery of time-sensitive packages. The company offers a range of time-guaranteed products, primarily one and two hour deliveries, although 15 minute and 30 minute deliveries are available in certain downtown metropolitan areas. The yield per delivery typically increases with the time-sensitivity of the delivery. The current expectation is to offer time-guaranteed delivery products in all key metropolitan markets within which the company currently operates. DMSC also provides a variety of slower same-day scheduled and routes delivery services in certain locations. As part of the expanded focus on electronic commerce, the company has begun providing metropolitan-based distribution and fulfillment services for e-commerce vendors and other web-based intermediaries.
DMSC provided services to more than 40,000 customers during 1999, including professional service organizations, large corporations, healthcare institutions and retail and manufacturing firms. A significant number of the company’s customers are located outside of the United States. During 1999, approximately 35.2 per cent and 7.8 per cent of the company’s net revenues were generates from the United Kingdom and Australasia, respectively.
Business Summary
Dispatch Management Services Corp. was formed to create one of the largest providers of urgent, on-demand, point-to-point delivery services in the world. The Company focuses on Point-to-Point delivery by foot, bicycle, motorcycle, car and truck and operates in 25 of the largest metropolitan markets in the United States as well as in the United Kingdom, Australia, and New Zealand. As part of the expanded focus on electronic commerce, the Company has begun providing metropolitan-based distribution and fulfillment services for e-commerce vendors and other web-based intermediaries.
Description and history
Dispatch Management Services Corp. was formed to create one of the largest providers of urgent, on-demand, point-to-point delivery services in the world. The Company focuses on Point-to-Point delivery by foot, bicycle, motorcycle, car and truck and operates in 25 of the largest metropolitan markets in the United States as well as in the United Kingdom, Australia, and New Zealand.

The Company provides a comprehensive range of urgent courier services. In providing urgent delivery services, the Company’s messengers respond to unscheduled customer requests for immediate pick-up and delivery of time-sensitive packages. The Company offers a range of time-guaranteed products, primarily one and two hour deliveries, although 15 minute and 30 minute deliveries are available in certain downtown metropolitan areas. The yield per delivery typically increases with the time-sensitivity of the delivery. The current expectation is to offer time-guaranteed delivery products in all key metropolitan markets within which the Company currently operates. The Company also provides a variety of slower same-day scheduled and routed delivery services in certain locations. As part of the expanded focus on electronic commerce, the Company has begun providing metropolitan-based distribution and fulfillment services for e-commerce vendors and other web-based intermediaries.

The Company’s operations are divided into three business units, U.S.A, the United Kingdom, and Australasia (Australia and New Zealand). The U.S. business is organized into four regions, having a total of 22 metropolitan operating centers in 27 cities, managed with regional and national oversight as appropriate. Metropolitan operating centers are responsible for courier management, call-capture, dispatch, customer resolution, invoicing, and collections.

The Company operates certain of its U.S. centers through compensation and incentive arrangements with former owners of the acquired companies (Brand Managers), known as Brand Manager Agreements, which were negotiated at the time the Company acquired the businesses. During 1999, approximately 20% of the Company’s revenues were generated by centers operating under Brand Manager Agreements. Each Brand Manager is responsible for maximizing the revenues and pre-tax profit margins of the specific business of his or her previously owned company.

The Company’s strategic goal is to become the largest or second largest provider of Point-to-Point delivery services in each market within which it operates. The Company has also commenced the development of a premium national and international same-day delivery product under the CitySprint brand name. Simultaneous with the rollout of the CitySprint brand name, the Company has begun utilizing the 1800Deliver telephone number as an important element of the related national marketing program.

The Company provided services to more than 40,000 customers during 1999, including professional service organizations, large corporations, healthcare institutions and retail and manufacturing firms. A significant number of the Company’s customers are located outside of the United States. During 1999, approximately 35.2% and 7.8% of the Company’s net revenues were generated from the United Kingdom and Australasia, respectively.

Formed to create one of the largest providers of urgent, on-demand, point-to-point delivery services in the world

Business Line
Focuses on point-to-point delivery by foot, bicycle, motorcycle, car, and truck and operates in 25 of the largest metropolitan markets in the United States, as well as the United Kingdom, Australia, and New Zealand
Subsidiary

Advisor
DELOITTE & TOUCHE LLP
IPO date

US SIC Code
4215
Company Address
Suite C131
1981, Marcus Avenue
City province or state postal code
11042, LAKE SUCCESS, NY
Phone: +1 516 326 9810
Fax: +1 516 326 9824
Country address: UNITED STATES OF AMERICA
Website url: www.dms-corp.com