1. Startups

Lalamove Plans Expansion in Java Island, Aims for 10 Times Addition of Couriers

The expansion step has been initiated by bringing instant delivery services to Greater Bandung

Service platform on-demand Lalamove aims to increase the number of couriers by ten times by 2022 to support its expansion plans to major cities in Indonesia. For starters, Lalamove expands the scope of instant delivery to Greater Bandung.

Menurut City Directors Lalamove Indonesia Andi M. Rizki, Bandung was chosen as the next expansion city after Jabodetabek because it has a large population and potential for MSME growth. For the first step, the company operates 5 thousand drivers in Bandung, both for two-wheeled and four-wheeled fleets.

"Bandung plays an important role as the first step in our expansion. We want to help the MSME market to develop product marketing without thinking about shipping. For this reason, we are targeting to reach approximately 30% of the MSME market there," Andi said in his official statement.

Contacted DailySocial Separately, Andi added that his party would continue to expand to big cities on the island of Java. One of the main focuses of its expansion is areas that have large MSME potential. In the long term, the company is targeting delivery services on-demand Lalamove is available in all cities in Indonesia.

"We continue to strive to meet the needs of our users with fleet variations and delivery speeds. To accommodate this plan, we will increase [the number of couriers] by ten times by 2022," he told DailySocial.

For your information, Lalamove is a logistics startup from Hong Kong that serves one stop solution for instant delivery on-demand with a wide selection of fleets, ranging from motorcycles, MPV cars, to cars pick up. Based on data crunchbase, Lalamove has bagged the title unicorn with a valuation of $2,5 billion.

Lalamove operates in more than 20 cities across Asia, Latin America and the United States with a total of 7 million users and drivers and 700 thousand couriers, respectively.

In Indonesia, Lalamove has only been operating since 2018 and now has 80 thousand drivers, 5 thousand business partners, and pocketed 400 thousand delivery orders every month. The business categories range from F&B, Wholesale, to moving service.

Not only the individual segment, Lalamove also provides instant delivery to the B2B segment which, according to him, contributes slightly to its business in Indonesia.

To strengthen its services, Lalamove offers features multiple stops or delivery to multiple direct destinations (up to 19 addresses) in a single transaction. In addition, users can also schedule deliveries up to 30 days in advance.

In Indonesia alone, Lalamove competes with various logistics platforms on-demand. Starting from super app as Gojek and Grab, to other players like Anteraja and Paxel.

Strengthen position in logistics market on-demand

Furthermore, Lalamove said that this expansion plan is also in line with the increasing trend of instant delivery of goods, especially in the Covid-19 pandemic situation. The company recorded that its delivery transactions rose ten times compared to the same period last year.

More Coverage:

According to Andi, the pandemic has not only changed the shopping behavior of people who have started to switch to online, but has also made expectations for delivery speeds even greater.

This expansion is also Lalamove's strategy to strengthen its position in the instant delivery market. This means that the company wants to encourage the use of its services not only for shopping delivery online, but also for daily needs, ranging from shopping for vegetables, medicine, to holistic needs for food delivery ecosystem large scale.

"With the addition of the fleet, we are optimistic about expanding. We see the trend of logistics industry demand increasing sharply in 2020 and we predict this momentum will continue," he added.

Application Information Will Show Up Here
Are you sure to continue this transaction?
Yes
No
processing your transactions....
Transaction Failed
try Again

Sign up for our
newsletter

Subscribe Newsletter
Are you sure to continue this transaction?
Yes
No
processing your transactions....
Transaction Failed
try Again