Pickupp: Asia’s on-demand delivery service for the holiday season
Pickupp, an Asian logistics startup, is more than ready for merchants anticipating a Christmas delivery gift rush.
Founded by Crystal Pang in Hong Kong in 2016, the data-driven platform is redefining the supply chain in Asia through the use of technology, promising transparent, customer-centric services.
It expanded to Southeast Asia through Singapore and Malaysia in 2017. Yesterday, the company announced a US$37 million Series B fundraise, bringing its total funds raised to US$52 million. This is its third funding in 13 months, with its initial Series A in November 2020, and another Series A+ in July 2021.
On-demand deliveries for seasonal delivery spikes
According to the statement, this funding will be used to deepen Pickupp’s presence in SEA and Malaysia, as well as strengthen its regional logistics network infrastructure to support the growth of Quick Commerce (Q-Commerce) and e-Commerce.
Q-Commerce refers to the speedier form of delivery in e-Commerce, where customers can get their purchases on the same day, even as quickly as within an hour’s window of time.
“Today’s customers are looking for a more personalized and flexible logistics service, not only last-mile deliveries but next-day deliveries with no minimum order at affordable rates where customers and small businesses can enjoy a wider range of options,” said Calvin Ma, Co-COO of Pickupp.
According to their website, Malaysian e-Commerce sellers can choose from three different delivery options — on-demand (express), same day, and next day.
Deliveries can start from as low as RM 4.50 per order, making its affordable price point attractive to customers.
Pickupp claims to have over 20,000 delivery agents in Malaysia. As such, they are confident of meeting the needs of clients with seasonal last-mile delivery services at a lower cost.
Picking-upp the logistics slack in Malaysia
The services sector remained as a key driver of growth in Malaysia’s e-Commerce income which rose to 17.1% in Q3 2021, according to The Star.
The Malaysian logistics industry contributed 3.8% to its gross domestic product (GDP) and is looking to realize the untapped potential with the aim to raise GDP contribution to 6.5% by 2030.
So what’s driving this growth in the Malaysian logistics sector? The answer lies in e-Commerce — an industry Pickupp is aggressively courting.
Pickupp believes its reliable and flexible delivery services to retailers and shoppers in Malaysia combined with its tech-driven customer-centric solutions could be key to unlocking this potential in Malaysia.
Pickupp promises on-demand, 4 hours slot 7 days a week deliveries with 24/7 real-time GPS tracking. Packages can be customized, insured, and come with API integration. Their couriers will also show a drop-off photo with the customer’s e-signature.
Pickupp already has had an operational presence within the Klang Valley since 2018 with recent expansions with regional hubs to Penang in September and Johor in December. The company aims to expand its presence locally in Malacca and Ipoh in 2022.
Pickupp building “Logistics Network as a Service”
Pickupp intends to use its latest funding to strengthen its network infrastructure with a “logistics network as a service” model.
Pickupp’s plans in Malaysia include providing nationwide coverage and a network of self-pickup and drop-off points, providing customers with greater accessibility, flexibility, and convenience.
The company is creating an ecosystem for SMEs and individuals with a network of easily accessible pick-up and drop-off (PUDO) points in Malaysia.
It achieves this by utilizing satellite warehouses as well as multi-city warehouse expansion and developing partnerships with other industry players such as Kirimman and Parcelhub.
“We have taken a similar approach to warehousing, as we do to our delivery agents – we leverage existing, available resources rather than invest in developing new ones. With this nimble and efficient approach to using resources and idle capacity in the market, we aim to make Pickupp the leading logistics network in Malaysia,” added Ma.
“We are seeing more strategic partnerships growing across the e-commerce and logistics industries. Recently, we have been supporting PChome with our last-mile delivery service, which enables them to deliver the best seamless Online-to-Offline (O2O) experience driven by technology and innovation.”
Pickupp’s customized last-mile delivery services and trademark technology have earned a loyal customer base from notable MNCs and logistics giants to retail and e-commerce.
“We pride ourselves as being an innovative logistics technology company that supports our customers not only with our technology, but with a range of platforms that help them meet the demands of e-Commerce and thrive — including a range of last-mile delivery options, and the Shop On Pickupp platform,” added Pang.
In the last 13 months, Pickupp has expanded rapidly while continuously diversifying its product portfolio and offerings across all industries and verticals, working with more than 23,000 active Malaysian merchants, as well as more than 26,000 delivery agents onboard across Malaysia.
The funds raised also allow the Company to execute not just a holistic business plan, but also to assist and support their strategic investors’ businesses and online strategies.
The Series B funding round was led by Innovate Jardines (Jardine Matheson’s innovation fund) alongside other existing investors including Swire Properties, PChome, Reefknot, Cathay Venture Inc., DRIVE Catalyst (the corporate venture arm of Far Eastern Group).
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