Accelerating on-demand delivery service

On its website, Lalamove pledges that its deliveries will take no more than 55 minutes on average.

It seems to be setting a yardstick. Now the delivery time has been further trimmed to 46 minutes, which makes Lalamove one of the speediest goods delivery operators in the world. The ongoing time challenge has helped the company prevail in the time-sensitive logistics market.

Logistics is a highly competitive field. Lalamove isn’t the first in Hong Kong to offer online on-demand van service. The road it travelled was rocky too. But Lalamove has developed footholds in more than 100 cities by now, and maintains a troop of 2 million drivers serving more than 15 million users in Taiwan, mainland China and Southeast Asia, and more markets are coming on stream. The company is racing ahead thanks to its agile business strategies and precise execution.

Lalamove, formerly known as EasyVan, was set up in 2013 and joined HKSTP’s Incu-App programme very early on. Through the support services connecting it with the technology community and investors, it managed to access vital market intelligence to map out business development. At the beginning, the company relied on a mobile app to provide delivery services by trucks or vans. Users placed their orders through their mobile phones and the system would push the requests to the nearest drivers to pick up and deliver.

On-demand motorcycle service breaks new ground
The Hong Kong market was highly competition then. Lalamove couldn’t get ahead, so it shifted focus to Taiwan, mainland China and then Thailand, Singapore and the Philippines in Southeast Asia. Within a few years, Lalamove had developed a reputation in the markets by speedily matching drivers and customers. It also brought highly popular on-demand motorcycle service to Hong Kong from Southeast Asia and broke new ground for the logistics service in Hong Kong.

Striving to change the industry 
Lalamove’s founder and CEO Chow Shing Yuk said the success of the company is built on the belief that the Internet can enhance delivery efficiency, and there is plenty of room to develop. He has observed certain gaps – while on-demand delivery has been around for a long time, it takes hours for a truck to move goods around though it only takes seconds for a platform to send a message; and then there are lots of trucks, vans and motorcycles on the road not carrying goods. He wanted to change the industry to shorten the delivery process from days to minutes, and at the same time cut non-productive time for vehicles, as well as lower the costs for driver management and car maintenance.

Currently, after a customer has placed a Lalamove order, it takes as few as 12 seconds for the order to be matched with a driver, and the driver will come to pick up the goods within 5 minutes. Motorcycle delivery is the company’s secret weapon. It has 3,000 motorcyclists on its roster currently, more than double the number of the same time last year. Customers can use the motorcycle crew to deliver food, documents or even personal items, which is helpful for the Hong Kong people leading busy lives.

Sustained investment in service content and quality 
Lalamove raised US$100 million in its C-round financing. Many of the investors of the round were involved in previous funding rounds too, which is a clear vote of confidence towards the company. Lalamove is also smart in deploying the raised funds. Other than expanding its business scope and market share, the company also puts an emphasis on nurturing people, and uses new ideas to keep strengthening its service content and quality. This is the Lalamove difference that customers can experience.

Having become one of the speediest logistics firms in the world, Lalamove is not resting on its laurels. It will continue to sprint ahead. A new initiative is opening its API (Application Programming Interface) to let e-commerce suppliers and platforms with enormous demand for delivery services to effectively integrate with the Lalamove delivery fleet, and elevate supply chain efficiency even further.

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