Lalamove streamlines logistics for small firms

Launched in Thailand on a beta trial in late November, Lalamove, a Hong Kong-based delivery-matching mobile application, expects to be delivering thousands of orders daily by the end of this year. 

Santit Jirawongkraisorn, co-founder and managing director of Lalamove Thailand, said this technology would enable increased efficiency and transparent pricing in this country’s highly fragmented logistics market.

The company targets both individuals and businesses. It see potential from both types of consumers, but it is currently focusing on small businesses that do not have their own fleets, lack delivery capacity to match their demand, or have trouble managing their logistics. 

“Our first and foremost target this year is to build our brand and presence to get our name out there to potential users. We are new in town, so we would like to let people know about our service. In terms of number of orders, we expect it will be in the thousands daily by year-end,” Santit said.

He said Lalamove’s business model was different from that of traditional logistics companies. Its technology connects users and drivers directly and therefore it focuses on building the technology that would best facilitate such connections. 

“In Bangkok, we have received positive feedback. People love us for our speed and convenience, as we offer a different type of service, which focuses on on-demand, instant, and last-minute delivery for personal users, small and large businesses.” 

The company continually adds drivers to its network. They are located throughout Bangkok, so users do not have to wait long for them to arrive. This eliminates the delivery pick-up fees that logistics companies charge. Santit claims that no logistics provider that can match Lalamove’s arrival and drop-off speed.

“We just launched, so we are always looking for drivers to join our network. Regionally we have more than 15,000 drivers. 

“We see great potential in Thailand. There is currently no similar service that focuses on last-mile and on-demand delivery. Our prices are also comparable to those of traditional logistics provider but users receive their packages right away, so it’s best value for their delivery money,” Santit said.

Vehicles belong to the company’s partners. Lalamove’s fleet in Bangkok comprises motorcycles, vans and multi-purpose vehicles (MPVs) and pickup trucks and will soon also include other types of delivery vehicles. 

Customers are charged a nominal fixed base fare plus distance charge. For delivery of documents or parcels not exceeding 20 kilograms on motorcycles, fares start at Bt60. 

Fares on vans and MPVs for delivery of goods or parcels up to 100kg start at Bt300, while delivery of goods, furniture and parcels up to 1,000kg via pickup truck starts at Bt600.

These fares exclude long-distance surcharges, special handling charges, additional stops, after-9pm surcharges, additional services and others.

Its clients include several online and e-commerce businesses in the fashion and food industries, including a number of bakeries. Popular chef-cum-fitness trainer Puri “Rock” Hassadin and DJ Poom use Lalamove for their food-delivery business.

The app is available to download for free on both iOS and Android in Hong Kong, Guangzhou and Shenzhen in China, in Singapore, in Bangkok and, most recently, in Taiwan. As of January, the number of registered users regionally was 315,000, while more than 20,000 drivers have been registered. 

The app was downloaded more than a quarter-million times last year. So far, there have been 12,000 downloads in Thailand.

Founded in October 2013 in Hong Kong by entrepreneur Chow Shing-yuk under the original name EasyVan, Lalamove was rebranded last November. 

Early this year, Lalamove raised US$10 million (Bt325 million) from a group of investors to strengthen its brand and fund its expansion into Southeast Asia and China.