Logistics in Southeast Asia are complex and expensive. Deliveree wants to solve that problem with a platform that not only lets clients book trucks, but also uses algorithm 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 led by Gobi Partners. Since it was founded in 2015, the company has raised over $100 million.
Consumers end up paying more for things because of the high cost of transportation. Inefficiency in trucking and cargo shipping has driven up costs. You are in California and buying a pair of shoes. How much is spent on transportation and warehousing? The answer is well documented. About 8% is how much it is. The answer is about 15% if you buy the same shoes in China. If you buy the same Nike shoes in Indonesia, Thailand or the Philippines, the answer is likely to be more than 25%.
The company says it has grown its gross transaction value by more than 3% in the past year and will surpass $100 million this year. The company has 500 employees and 100,000 drivers.
Deliveree is available in several Asian countries. Large trucks that move commercial goods are the focus. Kim said that it gets more searches than any other company. Waresix, Go Box, Kargo Tech and Logisly are in Indonesia.
Waresix, a logistics startup that has received funding, is located in Indonesia.
A lot of disruptive technology is being built in this area, and it is a very active market. Waresix is one of the well-known players. The Philippines and Thailand are both great markets, but there are less players in the Logistics space.
Deliveree solved one of the problems by using trucks inefficiently. When trucks deliver a load of goods, they leave empty-handed. Companies can book it to ship goods if it is part of Deliveree. Money spent on fuel, time and dispatch teams can be better used.
In Thailand, the Philippine and Indonesia, there are a lot of empty trucks. They deliver one way and the truck is empty. It is possible to send goods from one warehouse to another in a different city. You send a truck full one way and it comes back empty.
Kim said Deliveree has tens of thousands of customers and vendors, including a combination of independent drivers and trucking companies. The volume of the marketplace and its technology can help identify customers both ways on a truck's journey. Demand in the marketplace leads to optimal routes that keep trucks full. Kim said that before Deliveree, the utilization rate was 40% to 50%. Deliveree has been working on a data set for five years that can help trucks reach 80% utilization rate.
Kim said that these are things that have a big impact on the duration.
Deliveree can predict what waiting times will be so the warehouse has a shorter waiting queue.
Dispatch teams, admin teams, security teams, parking lots and security guards are all hired by most companies. Kim said that this is still the prominent way it is done. Kim believes that companies can de-leverage their balance sheets and book trucks on an asset-light basis if they pitch Deliveree to them. They only pay for trucks when they are needed. Kim said that when revenue went down, more people adopted Deliveree as they tried to increase revenue. As more companies tried to find ways to save money, they adopted Deliveree.
Deliveree can make money by charging a fee to customers and splitting it with the carriers. The Deliveree standard ratio is 80% to the independent trucking company and 20% to the company.
Kay Mok, managing director of Gobi Partners, said in a prepared statement that post-pandemic, they are moving into an inflationary environment. Deliveree has built the best tech platform for customers and this will allow them to reduce total cost of operation for the company.
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