The push behind the delivery startup's outstanding growth

The push behind the delivery startup's outstanding growth

31/03/2022
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The shock named Covid-19 made many businesses almost "immobilized", but some delivery startups quickly grasped market needs, upgraded service quality, and "lived well".

According to the report Vietnam IT Landscape 2020, in the period 2011-2017, transportation, forwarding, and commuting services only recorded 2 technology applications. Meanwhile, the majority of delivery applications are branched from large state-owned companies. However, the market has had a clear shift since 2018, a series of new names in shipping and forwarding services have developed to meet the rapidly increasing demand for online shopping.

Tit 01

When transportation services, like most of the economy, were on the rise, the Covid-19 epidemic hit, dealing a heavy blow to businesses. Figures from Business Registration Administration Department shows that in the first 7 months of the year, 8,102 enterprises in the wholesale and retail industry were temporarily suspended pending dissolution, accounting for 37.2%. Many other businesses have to cut staff and downsize to limit costs.

While many businesses struggled to choose between holding operations, "hibernation" waiting for the pandemic or finding new directions in the hope of changing the situation, many delivery startups recorded positive business results. , even growth. This adds bright tones to the somewhat quiet market picture. Prominent among them is Lalamove - a delivery startup from Hong Kong (China), which entered the Vietnamese market in October 2017.

Lalamove is among the few companies that do not cut personnel, pay bonuses, and even continuously recruit and increase employees. From 10 people when launching the service in Ho Chi Minh City in 2017, the business nearly reached 200 official employees in Hanoi and Ho Chi Minh City as of September this year.

Capital "born late", arriving in Vietnam when the delivery service was established and facing great competitive pressure, this startup understands the need to make a difference by optimizing the process to deliver goods. reach the recipient as quickly as possible. This is considered the key to helping rookies "win" users, starting to build their own set of customers. To do this, Lalamove determined to go into the niche market, focusing on inner-city delivery, mainly in the two largest cities in the country, Hanoi and Ho Chi Minh City.

Ghep 01

Unlike most other startups, Lalamove does not go in the direction of wide coverage or multi-service development, but only focuses its resources on delivery in the inner city to explore, make an impression, and provide good and fast service quality. and safer. At the same time, this startup easily manages and captures user feedback to change and improve in accordance with market realities.

In particular, Lalamove sees the needs of inner-city residents with special vehicles such as pickup trucks and vans. As a result, after retrofitting this vehicle into LalaTRUCK (intra-city delivery by truck), the service saw a growth of more than 30% per week, proving the right strategy and agility.

Thanks to that, Lalamove showed remarkable resilience, serving millions of orders every month. In particular, the number of orders from LalaTRUCK service accounted for more than 20% - a good sign when the specific product is well received by the market. On the momentum of growth, Lalamove aims to soon deploy the service in other cities such as Hai Phong, Da Nang, and Can Tho in the near future.

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