Borzo Strategy to Strengthen Instant Delivery Service in Indonesia

Logistics industry competition last mile in Indonesia it's so tight, it can be seen from the abundance of players playing in this segment. Call it JNE, Tiki, SiCepat, J&T, Ninja Express, AnterAja, GoSend, GrabExpress, Pos Indonesia, player E-commerce also have a fleet last mile itself, such as Blibli, Lazada, Zalora, and Shopee, and many more. MrSpeedy included in this section.

This startup that has been operating in Indonesia since September 2017, is now official rebranding became "Borzo Indonesia" after its parent company Dostavista secured a series C funding of $35 million in August 2021. Borzo became the sole brand used to unify the parent business spread across 10 countries.

Previously, the company used different brands in each country, for example, Dostavista (Mexico and Russia), Click Entregas (Brazil), WeFast (India), Quickers (South Korea), and Tanzhida (China).

When contacted DailySocial.id, Country Manager of Borzo Indonesia Devi Siska said that the change in the new trademark gave the company new ammunition to strengthen its focus on shipping. same days to more cities with an estimated four-hour delivery. “Earlier, Borzo moved in instant delivery ie one hour to [destination]. The rest, after rebranding not too much has changed, only the name has been made more global," he said.

Borzo's target users are business owners, whether on an individual scale, MSMEs, and social commerce who need delivery with prices starting from IDR 8 for instant delivery in the first 4 km in Jabodetabek and IDR 6 for delivery same days. The company is also API-connected with Shopify, WooCommerce, and Openchart.

The coverage area is spread over more than 45 cities, not only in the main city, but also in the second- and third-tier cities around the islands of Java, Sumatra, and Kalimantan-Sulawesi.

“The expansion of Borzo's services in Java is very rapid because almost all big cities have beencover Borzo service. Bali and Madura in the middle of this year have opened and are experiencing good development. Sumatra is the second island that has the largest distribution of Borzo. The islands around Sumatra are also the targets for Borzo's shipments, such as Batam and Pekanbaru."

Devi continued, next year the company will be more aggressive in entering more than 40 new cities so that more business owners can use instant delivery solutions and same days.

Unfortunately he was reluctant to elaborate further regarding the company's overall business growth, including the number of fleets that have now joined Borzo. It was only explained that Borzo's active fleet which continued to take consumer orders was in the range of 10 thousand couriers. The company itself relies on a two-wheeled and four-wheeled fleet in sending orders to consumers, and operates 24 hours a week.

As a technology company, it is claimed that Borzo provides applications for business users that are already powered by the courier selection algorithm with the highest rating, and closest to the consumer's position, so that the delivery duration will be much faster. “The value we offer is competitively priced and can be integrated with APIs for an easier delivery process.”

Ordering Borzo services so far is available with three methods, through the site, application and direct contact customer service. Consumers can also choose a delivery schedule according to their needs and to various addresses in one order to save on shipping costs. After the courier picks up the order, the consumer can also track the delivery process through the website and app. Even once the order is sent, there will be an SMS notification that will be sent automatically.

In the expansion of instant delivery services, the company recently released Buyout feature which allows consumers to buy goods with instant delivery on Borzo. The mechanism is that the courier will buy the goods at the shop/mall/warung according to the address, name of the item, and the price listed on the order.

The maximum order to take advantage of this feature is IDR 300 thousand, the price paid is in accordance with the purchase receipt, and payment is made in cash (for goods purchased), while for shipping costs with payment top up. This service can be accessed through applications and websites.

"Demand delivery from service Buyouts continue to increase, especially in regions other than Jabodetabek which require bailout funds from couriers to purchase the needs of Borzo users.”

Challenges in logistics last mile

Even though the player last mile in Indonesia impressed already crowded, but in fact this segment still has homework that needs to be done because this is an important indicator in ensuring customer loyalty. In a research is mentioned, as many as 56% of buyers will not buy from a brand again if they are not satisfied with the delivery service.

Some of the problems is the high cost of shipping, mentioned shipping last mile it accounts for more than 53% of the total shipping cost. Besides that, last mile delivery also cost up to 41% of the total cost supply chain. Not to mention, if you are charged with unexpected costs such as fees for returning goods (return shipping) or delays in delivery of goods due to wrong address and damaged goods.

One of the main reasons is the lack of infrastructure to deliver products on time; inefficient route determination; less transparent visibility; failed status and delivery delays; and, unexpected events.

Therefore, solutions are needed to solve these problems, namely route optimization; real-time tracking of goods and couriers; automatic allocation of shipments to appropriate vehicles; and digital proof of delivery.

This opportunity has become a field for logistics startup players who focus on providing SaaS solutions in the form of API integration, not only for the last mile but also covering the first mile. Some of the players, there are MileApp, Kargo, Luwjistik, Waresix, McEasy, and many more.