Hong Kong-based logistics startup Lalamove has been accelerating its expansion in Indonesia following the set up of its company in the market in February. Lalamove aims to give a different logistical approach from similar, existing companies.
Lalamove Indonesia Marketing Manager David Ceasario explained that the company’s business model offers last-mile delivery services for small- and medium-sized enterprises (SMEs) to reach out to their customers. The service offers same-day delivery service with a two-hour maximum distance for one location, and an extra 30 minute for additional location. For the time being, the service only offers motorbike as a mode of transportation.
“Before we start operating, we had already done a market research for a year to make sure that what we provide is in line with what the market needs. For the time being we only offer motorbikes as a mode of transportation, considering the density of Jakarta as a city,” Ceasario told DailySocial on Tuesday.
The company is targeting motorbike riders to help them make extra income. The requirements are quite simple: They only have to provide data according to their driver’s licence, citizen ID card, et cetera. The vehicle’s age should not be older than 10 years since its production.
Driver-partners will then be required to attend a full-day training before they can officially be part of Lalamove. The goal of the training is so that they can understand the company’s logistical SOP.
“[Running a] B2B service requires certainty and stability. We need to train the drivers so that they can be fully aware of it, with the goal that they can be responsible in doing their job,” Ceasario said.
Lalamove also paid extra attention to their customer service (CS) team, as the team will be directly in contact with customers when problems arise. This is why Lalamove decides to set up its own CS team instead of working with a third party.
“Our CS officers are also trained to be a pro-active problem-solver, to always ask for feedback from customers and partners, what needs to be improved, et cetera. Since we are working in B2B sector, trust is a very important element, that’s why they have to be trained,” Ceasario said.
Lalamove features development
Lalamove offers two types of mobile apps with different functions. The first one was dedicated to driver-partner while the other one is for Lalamove users, both individuals and SMEs. The UI/UX was designed to be as simple as possible and to-the-point.
The landing page displayed options for goods delivery. Users only have to put pick-up location and destination. The app will then calculate the shipping fee that has to be paid, with other additional charges for purchase service or round trip.
Purchase service is a shopping service for end users that allows drivers to buy food and other goods for a maximum of IDR300,000 (US$21.6) per transaction.
“In other countries, Lalamove already have different kinds of unique logistics services. In Hong Kong we have a logistic service to pick-up pets, while in the Philippines we have a medicine delivery service,” Ceasario said.
Business owners are able to put a driver into their favourite list so that the driver will be prioritised every time the company placed an order. Users can also use the multi-drop feature for delivery to up to 10 destinations for each booking.
Ceasario said that the company will continue on developing new features to adjust to the market’s needs. There is a possibility that they are going to implement features that have already been launched in other markets.
At the moment, the company is focusing on delivery in Greater Jakarta Area with 500 active driver-partners on board. Ceasario claimed that Lalamove opens an opportunity for drivers who are looking to make extra income with great flexibility.
The company offers driver-partners a 20:80 commission for every transaction, which is considered competitive when compared with other ride-hailing services operating in Indonesia.
The Lalamove service implements a flat tariff without considering peak hours. Users will have to pay IDR16,000 (US$1.16) for the first five kilometers, with IDR2,250 (US$0.16) per kilometer beyond that.
Ceasario said that the company aims to keep on adding up the number of drivers until it reaches 2,000 persons by the end of the year. The company also plans to reach out to SMEs to join the platform and give their inputs.
“Lalamove is approaching 250 small business owners to test out the service, so that they can give their inputs to us,” he said.
In its early days, Lalamove claimed to have received 30-50 bookings each day, and the number is expected to increase as the number of users grow.
There is also a possibility for them to expand to other cities such as Bandung and Surabaya. But Ceasario said that the team still has to perform in-depth research for the plan. Lalamove is also preparing for an open API so that it can become a new shipping option on various e-commerce platforms.
“With all these strategies we expect the public to start recognising Lalamove as an option, and that the features we offer can suit the market’s needs,” he closed.
Founded in 2013, in addition to Indonesia, Lalamove is already available in Singapore, the Philippines, Thailand, Vietnam, Malaysia, Taiwan, and China.
The article Startup Logistik Lalamove Tawarkan Layanan Terpadu “Same Day Delivery” untuk Pengusaha UKM was written in Bahasa Indonesia by Marsya Nabila for DailySocial. English translation and editing by e27.
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