After raising US$100 million (around HK$780 million) in series C funding in October last year, Hong Kong logistics startup Lalamove has ventured into the Malaysia market, testing its services in Kuala Lumpur since June.
The company recently officially kicked off its Malaysian operations, with plans to open new offices and expand the business, the Hong Kong Economic Journal reports.
The startup aims to have offices in Johor and Penang in the next six to 12 months, adding to its main facility in Kuala Lumpur.
According to Sik Hoe Yong, Lalamove’s country director in Malaysia, the startup fleet has been able to complete deliveries in under 36 minutes for locations within five kilometers or less, after the firm began testing its services in the market.
For deliveries within a 10-kilometer radius, the fleet completed deliveries in average time of 50 minutes, the executive said.
The Kuala Lumpur office currently offers services to 200 small-to-medium enterprises (SMEs), and has 1,800 registered drivers, Yong said, according to HKEJ.
The company is delivering 300 orders in the city per day, expecting to deliver 1,500 orders per day by this year-end.
Founded in December 2013, Lalamove focuses on using technologies such as mobile apps and real-time GPS vehicle tracking, riding on the concept of shared economy, to deliver business matching services for customers including SMEs on a 24/7 basis.
The on-demand logistics service provider relies on cars and motorcycles for deliveries. It will partner with car factories in eight Chinese cities including Shanghai, Beijing and Tianjin, purchasing new vehicles including vans and trucks for its registered drivers.
The startup currently has business coverage in Hong Kong, Taiwan, Singapore, Thailand, the Philippines, Vietnam, and India, as well as 114 cities in China, serving more than 15 million customers.
Its corporate clients include Google, Ikea, McDonald’s, 7-Eleven, Line, and Lazada, the largest online shopping platform in Southeast Asia.
In July, Octopus Cards and Lalamove teamed up to launch O! ePay payment service to all drivers of Lalamove, a move that enabled the drivers to receive payments through the Octopus system.
Lalamove said it currently has no mergers and acquisitions plans.
Among other players in the industry, online logistics platform GoGoVan, which merged with China-based 58 Suyun last year, now has business coverage in Hong Kong, Taiwan, Singapore, South Korea, India, and more than 300 cities in mainland China.
Last month, the on-demand logistics service firm raised US$250 million (around HK$1.95 billion) in funding, led by InnoVision Capital. The company sees Hong Kong as its first choice for a stock market float, and doesn’t rule out the possibility that it could seek a listing through the weighted voting rights structure.
This article appeared in the Hong Kong Economic Journal on Aug 14
Translation by Jonathan Chong
[Chinese version 中文版]
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