Bukalapak Gets Paxel's "Last Mile" Logistics Platform, Serves "Same Day Delivery" Delivery Between Cities and Provinces

Bukalapak announces collaboration with logistics startup "last mile"Paxel to serve delivery same-day delivery between cities and provinces. This collaboration is still exclusively available on Bukalapak.

Co-Founder and President Bukalapak Fajrin Rasyid explained, so far the delivery same days limited to within the city and only served by players on demand, such as Go-Send and GrabExpress.

According to Bukalapak, there are a number of challenges in logistics that they still face, such as shipments that have not been received, the status of returned packages, incomplete addresses, lost or damaged goods, and problems with receipts.

" Bukalapak customers need reliable logistics services as a solution to the challenges of shipping goods they have faced so far. We are always looking for innovative solutions to improve the goods delivery ecosystem," he explained, Friday (3/5).

According to the McKinsey report, by 2022, Indonesia will ship 1,6 billion packages per year. This figure is more than the total package shipments in history. In addition, citing PwC's 2018 Global Consumer Insight Survey report, 41% of respondents are willing to pay more for services same-day delivery. Seeing this need, Bukalapak is committed to providing delivery solutions that prioritize quality and speed.

Co-Founder paxel Zaldy Ilham Masita added, over the last five years the development of e-commerce has grown rapidly but has not been matched by the logistics industry. Then, in the last two years there has been a need from consumers who want delivery same days. This became a new trend and inspired the founding of Paxel.

"Paxel combines algorithms and technology, people and to process so that the goods can arrive on the same day with the price flat. As a result, we provide the most efficient and productive shipping method that is completely different from what logistics companies have done so far," said Zaldy.

He continued, delivery same days this could be an opportunity for merchants to develop their market to reach more consumers. From the results of an internal survey conducted by the company, it was revealed that same-day delivery can provide ROI (return on investment) up to 4 times.

Because they can receive cash disbursement faster than before, they have to wait 3-4 days until the goods are received by consumers. They can use the funds to expand their business again.

"There will be a tendency for consumers to become repeat consumers because they are satisfied when the goods arrive faster than they predicted," added Fajrin.

Bukalapak customers can enjoy delivery services by Paxel on the same day within a span of 8 hours for within the city and 10-15 hours for between cities. This service is available for the Greater Jakarta, Bandung, Semarang, Yogyakarta, Solo, Malang, Surabaya, and Denpasar areas.

Paxel utilizes airplane or train transportation modes to serve deliveries same days between provinces combined with Paxel's business model, namely relay, utilizing smart lockers to connect with each other between couriers.

Currently, Paxel has a fleet of 1.400 couriers spread across Java and Bali, with 100 smart lockers newly available in Jakarta. Bukalapak is Paxel's first e-commerce partner. So far, most companies work with merchants social commerce who sells on Instagram accounts or other social media.

Paxel's user base is claimed to reach 200 thousand merchants. Paxel's shipping volume has grown by 30% per month since it was first released in early 2018. New shipments are available for small and medium package volumes with a maximum weight of 5 kg.

Zaldy said the company will expand its services to Medan and Makassar this year. The partnership with Bukalapak will be taken to an advanced stage, using Bukalapak's partner stalls as a point drop or locker.

"If you can later use Bukalapak's partner stalls, of course, the shipping price can be reduced, so shipping same days can be enjoyed by everyone," concluded Zaldy.