Paxel and Blue Bird Launch "Same Day Delivery" Logistics Service PaxelBig

Application-based logistics startup Paxel officially launches logistics services "same-day delivery" PaxelBig collaborates with PT Blue Bird Tbk. Services first mile it's been commercial since March 2020.

Using the Blue Bird fleet, PaxelBig provides a larger shipping capacity, which is 5-20 kg with rates starting from Rp. 30.000 for the first 10 kg. For the initial stage, PaxelBig can only be used inside and outside the city for the Jadetabek-Bandung area and vice versa.

At the launch event, Paxel Co-founder Zaldi Ilham Masita said that PaxelBig was developed to answer the demand for SME segment who want large capacity deliveries during this pandemic. At the same time, this is Paxel's effort to expand its service coverage outside the city.

Before the pandemic, said Zaldi, 85 percent of Paxel users from the SME segment delivered goods with an average capacity of under 2 kg. Once the pandemic occurred, this capacity increased to 5 kg.

In addition, Paxel data recorded a sharp increase of up to 50 percent in goods delivery transactions, mostly in the form of food, staples, and health products during the March-May 2020 period. Meanwhile, the average number of shipments reached 100-200 thousand packages per day. .

"Because there are a lot of food deliveries, even 5 kg capacity is not enough. We thought about how to serve same-day delivery with larger capacity and affordable price. This is where PaxelBig is present," he said.

Meanwhile, Blue Bird's Chief Strategy Officer Paul Soegianto said that his collaboration with Paxel was one of the company's initiatives to boost the logistics business.

This is a new market share for Blue Bird, which previously played in the segment passenger. "We are confident in the market potential and input from customer, this service can grow big. Moreover, we see that the SME segment has been difficult to reach consumers and logistics costs are still expensive in Indonesia," he added.

One of the advantages of PaxelBig, said Paul, is the standardization of hygiene in each fleet, especially since all of them are owned assets. In addition, PaxelBig uses a fleet of MPV types that are suitable to accommodate large-capacity shipments.

"We are using the fleet Existing so cost [efficient]. In essence, we want to contribute to logistics services during the pandemic, especially regarding hygiene, which we apply according to our standards," he added.

Previously, in an interview with DailySocial some time ago, Paul said that Blue Bird has three main focuses, namely being a provider multiplatform/channel, multiproduct/serviceand multipayment. The goal is to create an integrated service ecosystem and strengthen its position in the transportation industry in the digital era.

Logistics landscape in 2021

Zaldi hopes that the presence of PaxelBig can become a new trend in the logistics industry considering that no player has entered this kind of service yet. So far, he said, there has been no service same-day delivery which serves the delivery of goods with a capacity of 5-20 kg.

"This solution can answer the logistics challenges in Indonesia. We hope this service can change the logistics industry landscape in the next year and open up hidden more economy," he said.

Previously, Zaldi mentioned that the growth of the logistics industry in Indonesia over the past decade rose above the national average growth of around 10 percent per year. One of the reasons for this increase is the presence of logistics services last mile growing 30 percent per year.

Based on the 2019 Paxel Buy & Send Insights survey, physical store ownership in the digital era is starting to become irrelevant for the SME segment. As many as 66 percent of the 535 respondents think that the income from online stores has exceeded the income from physical stores.

Meanwhile, the seller online rely more on services same-day delivery. This is illustrated by 36 percent of respondents who want speedy delivery rather than cheaper costs (29%), easy delivery (26%), and a system live tracking (8%).