The Bangkok logistics startup claims to be even 50 per cent cheaper than its competitor during the first 10 km of a delivery
Earlier this month, our Indonesian correspondent had lunch at Deliveree’s Jakarta office. As they’re actually a Bangkok-based startup, we caught up with Country Manager Nattapak Atichartakarn at Echelon Thailand to learn more about what the company is doing.
Atichartakarn, who is actually a hardware engineer by training, used to design microprocessing chips for AMD in Silicon Valley. He then left the US to head up EasyTaxi’s operations in Thailand before joining Deliveree.
The nine-month-old startup offers a fleet ranging from small economy cars, open-bed pickup and boxed trucks for anyone looking to move items from Point A to Point B.
“It all comes down to efficiency. For example, if you look at the individual segments: When people need to move home here [in Bangkok] — they go out on the street and look for phone numbers of drivers, collect those numbers, call and negotiate prices. With Deliveree, they can download our app, get standard pricing and have us ensure the quality,” he says.
Its main competitor in Thailand is Lalamove (known as EasyVan in Hong Kong), which offers almost identical services, but Artichartakarn says that Deliveree’s edge is a wider vehicle offering and better pricing.
“Comparing the smallest four-wheel options for Deliveree and Lalamove, Deliveree is, on average, 38 per cent cheaper — the gap is particularly wide during the first 10 kilometres, [which is] more than 50 per cent,” he says.
A focus on enterprise customers
Among Deliveree’s 30,000 downloads are two types of customers — enterprise and individuals. Use cases are typically shifting offices and moving house.
“We have two types of customers. The business customer has a lot more lifetime value as they have repeat business, but individuals are also important to us because they add nice volume, although they don’t move every week,” says Atichartakarn and also noted that individual customers typically use Deliveree for shopping trips to IKEA.
Just announced is Deliveree’s plans on enticing enterprise customers more through its newly launched ‘Business Program.’ It offers features such as: Merchandise insurance, a specially-trained business driver and a web dashboard that lets employees manage orders.
The program is a win-win as it helps companies lower their startup costs by buying and managing their own delivery fleet and also eliminates the problem of idle trucks.
‘We want to be the Amazon for logistics vehicles’
Between Bangkok and Jakarta, Deliveree has over 600 registered drivers in its fleet that are sometimes recruited guerilla-style at truck posts (taxi queues for trucks), where drivers hang out and wait for jobs.
“It’s a marketplace model. We recruit them, screen them, do a background check, train them on the app and on the service. We then monitor their performance, which is rating-based and the customer can rate the driver after completion,” says Atichartakarn. Drivers also also recruited online and through referrals.
“We want to be the Amazon for logistics vehicles, from two-wheels to six-wheels, to specialised (refrigerated) trucks. There’s always demand for more vehicles, more location and more coverage,” he says.
Guided by customer demand, Deliveree is testing the waters by fulfilling offers within Bangkok and delivering items outside the city. Eventually, it’ll be able to extend its reach to all of Thailand.
Atichartakarn also says that the startup is exploring their third market at the moment, taking the Philippines, Malaysia or Vietnam into consideration.
Disclaimer: Ardent Capital is an investor in Optimatic, the parent company of e27.
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