Logistics start-ups target Southeast Asia

Author without image icon
Editorial
15 March 2016
2 min

Consumers
in South-East Asia are increasingly shopping online. The region has no fewer than 600
million inhabitants, leading to expectations that South-East Asia, alongside India and
China, to become one of the world’s largest e-commerce
markets in the world. However, the infrastructure and logistics network in the
region are, however, far from organised, meaning that consumers still have to pay sky-high
delivery charges and have to wait days for their parcels. Logistics
start-ups in the region are cleverly capitalising on this logistical shortfall.

Logistics start-ups are therefore springing up like mushrooms in South-East Asia. One such example is the
company aCommerce, which positions itself as a one-stop shop for online retail.
aCommerce offers cross-border management, warehousing, fulfilment and last-mile
delivery. Recently, the online grocery delivery service Happy Fresh and
last-mile delivery service Ninja Van were also launched. In addition, Deliveree, a
delivery service that connects hauliers with customers, is active in
South-East Asia.

Start-ups are proving popular with investors
Investors, too, see potential in these new logistics companies. In 2015,
no less than 28.16 million dollars was invested in regional logistics companies.
That represents growth of 110 (!) per cent compared with the previous year. In particular,
aCommerce received significant backing from investors. In recent years,
it has received a total of $20.2 million in investment.

Barriers in the region
The start-ups are working hard to improve logistics efficiency in the region, but the authorities
are not always willing to cooperate. South-East Asia still faces various
regulatory frameworks, inefficient customs procedures and corruption, which
market. The ASEAN Economic Community aims to foster economic cooperation
between the various countries in South-East Asia, similar to that of the
European Union. The organisation aims to remove trade barriers between the countries
, but the question is whether the various governments will be able to reach an agreement
.

Editorial LogistiekProfs

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