Citing 600 per cent revenue growth within just one year, Lalamove expects to reap profits within the next two months
According to Santit Jirawongkraisorn, Lalamove’s regional director for city operations, the same-day delivery service will create a new revenue source for the company. He also stated that Lalamove is on the verge of automating the delivery process to scale up service standards at “no extra cost.”
Targetting small and medium-sized enterprises, the average price range for the service is expected to be between THB40 (US$1.14) and THB 60 (US$1.71).
In the recent years, Thailand has seen the rise of foreign logistics players getting into the market, with companies such as SCG Yamato Express (a joint venture between Siam Cement Group and Yamato Asia, Pte) and DHL eCommerce Thailand (an operating unit of the logistics giant DHL).
Same-day delivery service is considered the hot new segment in Thailand’s logistics services industry. According to the report, next-day delivery now accounts for 95 per cent of existing logistics services in the country, while the remaining five per cent is filled by on-demand delivery services, leaving plenty of opportunity for industry players.
At the moment, Lalamove’s competitor in this segment will be Kerry Logistics, though DHL eCommerce Thailand also provides same-day delivery service in Bangkok.
Lalamove seemed to be experiencing a momentum in the Thai market.
Managing Director Chanon KLahan said that the company saw 600 per cent growth in revenue from THB20 million (US$571,000) in 2015 to THB 120 million (US$3.4 million) in 2016.
Crediting “huge growth” in online retail and its “aggressive” business expansion, Klahan stated that Bangkok posted the highest growth for Lalamove in Southeast Asian market.
He also expects the company to generate profits within the next two months.
Lalamove claims to have registered 210,000 downloads in Thailand, with over 17,000 participating drivers.
The company has operations in 40 cities in China plus another five in Southeast Asia, including Taipei, Singapore, Hong Kong, Malaysia and Bangkok. With its recent US$30 million new funding, it plans to increase its operation from 45 cities to 100 cities across 10 countries this year.
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