Deliveree is smoothing out Southeast Asia’s bumpy logistics landscape – TechCrunch
Logistics in much of Southeast Asia is not only complicated, but also expensive. Deliveree wants to solve this problem with a platform that not only allows customers to book trucks, but also uses algorithms to determine the best route based on location, trucking loads and even the weather. The company announced today that it has raised a $70 million Series C round led by Gobi Partners and SPIL Ventures, with participation from returning investor Inspire Ventures. This brings the total raised by the company to date to $109 million since its inception in 2015.
The high cost of logistics means consumers end up paying higher prices, said founder and CEO Tom Kim. “The way we see the market is that, first, inefficiency in trucking and freight transportation has driven costs up dramatically. Imagine you are in California, Los Angeles, and you buy a pair of Nike shoes. How much of this cost of sale is devoted to logistics, transport and warehousing? The answer is very well documented. It’s about 8%. If you buy those same Nike shoes from China, the answer is about 15%. And if you buy the same Nike shoes in Indonesia, Thailand or the Philippines, the answer will be much closer to 25%, maybe more than 30%.
The company says that in the past 24 months, it has increased its gross deal value by 3.2 times and will surpass $100 million this year. It currently has 500 employees and 100,000 drivers on its platform.
Deliveree is currently available in Indonesia, the Philippines and Thailand. It mainly focuses on large trucks that carry commercial cargo or large items. Kim said that based on Google Analytics, he is more searched than other logistics companies. These include Waresix, Go Box, Kargo Tech and Logisly in Indonesia; Mober, Inteluck and TheLorry in the Philippines; and Giztik, TheLorry and Ezyhaul in Thailand.
Kim added that the logistics war is particularly heated in Indonesia, where many logistics startups, like Waresix, have received funding.
“It’s where a lot of startups and disruptive technologies are being built in the space, and it’s certainly a very active market,” he told TechCrunch. “There are all these famous players, like Waresix or even Kargo Tech. The Philippines and Thailand are also interesting and great markets, but there are fewer players in the logistics space, especially freight, trucking and freight.
One of the problems that Deliveree solves is the inefficient use of trucks. For example, trucks deliver a load of goods, but then return empty to warehouses. If it’s part of Deliveree’s system, however, businesses can book it to ship goods on the way home. This makes better use of money spent on fuel, time and dispatch crews.
“There are a huge number of empty trucks driving around in Thailand, the Philippines and Indonesia, as each has its own corporate fleet,” Kim said. “They make a one-way delivery and the truck comes back empty. This is even the case for long-distance deliveries, when you send goods from a warehouse to some sort of facility in another city. The same thing happens: you send the truck full one way and it comes back, sometimes hundreds of miles away, empty.
Deliveree solves those problems with a vibrant marketplace, which Kim says currently has tens of thousands of customers and suppliers, including a mix of independent drivers and trucking companies. Market technology, combined with its volume, can identify customers in both directions on a truck’s journey, so it rarely travels empty. The market aggregates demand and determines optimal routes to keep trucks full. Kim said that before Deliveree came along, a utilization rate of 40% to 50% was considered above average. With Deliveree’s Marketplace, however, trucks can achieve up to 80% utilization, thanks to Deliveree’s internally generated dataset, which it has been working on for five years.
“Even though it’s far from perfect, it’s getting smarter every day because we make thousands of reservations every day, and it can make more accurate predictions about the duration of the reservation, the day of the week, the time of day, even the weather. . Those are all things that have a huge impact on durations,” Kim said.
It also means the warehouse has shorter queues because Deliveree’s algorithms can predict loading and waiting times.
Most companies have their own fleets, which means hiring dispatch teams, administrative teams, security teams, parking lots and security guards. It’s still the most common way to go, Kim said, and it means a lot of overhead for businesses. Kim said his argument when pitching Deliveree to businesses is that they can deleverage their balance sheets and book trucks on an asset-light basis. This means they only pay for the trucks when they need them. When the pandemic hit, revenue for many businesses declined, and Kim said this led to greater adoption of Deliveree as they tried to increase revenue. This increased adoption of Deliveree, as more businesses tried to find ways to save money, to convert their fixed costs into variable costs.
The receiver monetizes by charging a fee to the customer and sharing it with carriers. The standard driver ratio is 80% for the independent driver or trucking company, and a 20% commission for the company.
In a prepared statement, Gobi Partners Managing Director Kay Mok said, “After the pandemic, we are entering an inflationary environment plagued by supply chain issues. Deliveree has built the best technology platform for customers, which will enable them to optimize and reduce the total cost of operation for the logistics and transport company. »