Brad Baker has overseen one of the more significant pivots in Canadian logistics. Ten years after Mitchell Goldhar opened the company’s first Ontario location, Baker and his team has transformed what was once a network of brick-and-mortar parcel pickup and drop-off shops into a platform company that’s tripled its reach in just months.
The numbers tell the story. Penguin Pickup wound down nearly all of its physical locations, keeping just two Toronto stores, while opening more than 40 partner locations in single months during peak expansion. Solar-powered smart lockers now dot TTC and Montreal STM stations, while partnerships with London Drugs, INS Market, and hundreds of independent retailers have created a network that would have taken decades to build through traditional expansion.
“Our customers and partners would almost always say, ‘Brad, we want hundreds of you,'” Baker explains. “I thought about that with the team and said to deliver their wish, it just won’t be possible the way we’re doing it.”
The transformation didn’t happen overnight. Penguin Pickup built its reputation through a decade of strategic moves, starting with UPS Store Canada partnerships in 2015, expanding to FedEx, DHL and Walmart relationships by 2017, and entering Quebec along with forming a partnership with IKEA in 2018. By 2020, the company had delivered over one million packages and launched its “Get It” subscription service while pushing into British Columbia.
But Baker, who spent two decades at Walmart learning how to scale operations, could see the writing on the wall. Traditional brick-and-mortar expansion was eating capital and slowing growth. The company had built something valuable – proprietary technology, API integrations with major Canadian couriers, and deep expertise in out-of-home delivery – but the old model was holding them back.
“The way that we had done it in the first decade was through expansion in brick and mortar locations,” Baker explains. “We would fit out a location, lease it, operate it. That comes with a lot of complexities and takes a lot of time, and it slows down your ability to scale.”
Solar-Powered Smart Lockers Lead Technology Innovation
The breakthrough came through studying European markets, where locker and platform models are years ahead of North America. Baker’s team spent months researching before partnering with Romania-based ARKA to develop lockers that could handle Canadian winters while running entirely on solar power.
“When we started this locker journey, we decided we were going to take our time to really learn about that space before we made any rapid decisions,” he says. The resulting lockers operate at up to -40°C while maintaining CCTV cameras, lighting, and user-friendly screens. “We like the idea of solar powered lockers not just for sustainability, but because deployment becomes easier when you’re not involving pulling electricity and permits.”
The technology story extends beyond hardware. Penguin Pickup’s rate shopper platform has transformed what Baker describes as traditionally complex transactions into 30-second experiences. Walk into a participating location, tell them you want to ship something to Vancouver, and the system presents over 20 carrier options with real-time rates. Customers can choose based on price, speed, carrier preference, or sustainability metrics.
“It’s a transaction that used to take a long time or be quite complex,” Baker notes. “Now in about 30 seconds or less, we’re going to tell you ‘here are upwards of 20 options, all kinds of carriers, real time rates that are great rates.'”
Platform Strategy Enables Strategic Transit Partnerships
This isn’t just operational efficiency – it’s a fundamental shift in how Penguin Pickup positions itself in the market. Baker draws parallels to Uber Eats, which doesn’t own restaurants but facilitates connections between customers and food providers. “We’re really being clear about our role as a platform company in facilitating that interaction between the consumer and the carrier.”
The platform approach has enabled partnerships that would have been impossible under the old model. Transit authorities like TTC and STM don’t typically think about logistics, but Baker’s team found ways to create value for both sides. The lockers provide convenient pickup locations for urban consumers while offering added service for commuters and supporting sustainability goals through solar power and reduced truck traffic.
“One of the things we wanted was something that could be solar and battery powered, not just for the sustainability benefits alone, but because of the deployment,” Baker explains. “It becomes a lot easier to have conversations with potential spaces when you’re not involving pulling electricity and necessary permits.”
The results speak for themselves. During peak months this year, Penguin Pickup opened more than 40 Partner Shops, a pace that would have been financially impossible through traditional leasing and buildouts. The partner network now spans independent convenience stores, pharmacies, gas stations, and major retail chains across multiple provinces.
Addressing Last-Mile Delivery Challenges in Canada
But Baker sees this transformation as addressing deeper problems in Canadian logistics. While getting packages delivered has become relatively seamless, returns remain a persistent pain point for consumers.
“We can still likely get that new t-shirt we ordered to our doorstep or in the lobby of our building,” he observes. “But when I want to return the shirt, it’s often a pain point.” Penguin Pickup’s expanded network provides convenient drop-off locations while the company’s subscription program offers peace of mind for customers dealing with porch piracy or missed deliveries.
“Our subscription program gives Canadians the peace of mind to say, if I’m a Penguin Pickup subscriber, I can with confidence send my parcels to a Penguin Pickup and know that they’ll be held there safely until I’m ready to pick them up,” Baker explains. “It removes all kinds of worries, whether it’s because I’m on vacation or whether I have a porch piracy problem.”
The European research that inspired this transformation revealed what Baker calls “a sneak peek behind the curtain” of future delivery trends. By implementing these innovations in Canada, Penguin Pickup is positioning itself to lead market evolution rather than react to it.
“You’re seeing around the world that parcel carriers and parcel providers in some cases are struggling, particularly those that may be doing things truly just the traditional way,” Baker notes. The company’s willingness to pioneer new approaches reflects his confidence in the platform model’s potential.
Building Adaptive Teams for Digital Transformation
The transformation required more than technology and partnerships – it demanded cultural change within the organization. Existing employees had to adapt their skills as job functions evolved with the business model.
“As you go through these transformations, we needed to ensure that the folks on our team could maybe shift their skill sets because what you did perhaps in the old version of Penguin Pickup wouldn’t necessarily make sense in who we are today,” Baker reflects. “Some people had to shift chairs or upskill themselves.”
Looking ahead, Baker emphasizes expanding awareness of the rate shopper platform while growing the subscription base that has attracted thousands of customers. With infrastructure now in place for rapid scaling, he sees unlimited potential for location partnerships across Canada.
Penguin Pickup has evolved from a traditional parcel pickup and drop-off company into something more ambitious – a technology-enabled platform that aims to become what Baker calls “Canada’s most trusted shipping address.”
For Toronto’s business community, the story offers insights into how established companies can leverage technology and strategic partnerships to compete in rapidly evolving markets. In an era where traditional retailers face mounting pressure to adapt, Baker’s approach demonstrates how strategic thinking and careful execution can help transform industry challenges into opportunities.
The decade-old company that started with a simple idea about making shipping and pickup easier has evolved into something larger – an example of how digital transformation can preserve core strengths while exploring new possibilities.
Dustin Fuhs is the founder and Editor-in-Chief of 6ix Retail, Toronto’s premier source for retail and hospitality industry news. As the former Editor-in-Chief of Retail Insider, Canada’s most-read retail trade publication, Dustin brings over two decades of expertise spanning retail, marketing, entertainment and hospitality sectors. His experience includes roles with industry giants such as The Walt Disney Company, The Hockey Hall of Fame, The Canadian Opera Company, Starbucks Canada and Blockbuster.
Recognized as a RETHINK Retail Top Retail Expert in 2024, 2025 and 2026, Dustin delivers insider perspectives on Toronto’s evolving retail landscape, from emerging brands to established players reshaping the city’s commercial districts.