AirAsia revealed on August 18 that its logistics arm, Teleport, will acquire Penang’s delivery hub, Delivereat, for $ 9.8 million. The deal values Teleport at $ 300 million, and the logistics company will welcome venture capital firm Gobi Partners on board.
“This is a 100% acquisition in which Delivereat will shift to become fully under the umbrella of Teleport,” said Pete Chareonwongsak, CEO of Teleport to Vulcan Post. “We will work with the airasia food team to ensure the transition and integration of Delivereat’s food traders onto the airasia food platform as smoothly as possible by Q4. “
This means Delivereat customers will still be able to order from their favorite merchants on airasia food, and Pete explained that the startup’s fleet of around 4,000 passengers will also be integrated into Teleport’s fleet by September 2021.
The founders of Delivereat, Leong Shir Mein and Tan Suan Sear, will also join the management team of Teleport and airasia digital.
On a fairer playing field as a super app
It is a well-known fact that AirAsia’s goal has been to become ASEAN’s main super app for some time now, accelerated by the pandemic disrupting its air services. But to get there, they need to capture a significant market share in Malaysia with popular offerings, and the acquisition of Delivereat will play an important role in that plan.
“Delivereat is bringing an extensive and competitive delivery network as quickly as possible to major cities, where Teleport does not have a strong presence, ie Penang,” Pete explained. “The aim is not only to expand in the food delivery space, but also to connect Penang with its growing potential to the rest of ASEAN with our ability to deliver cross-border within 24 hours.”
Founded in 2012, Delivereat has grown to deliver over a million orders to date and has on-demand express delivery and food delivery services. Its 4,000 merchants include restaurants, wet markets, pharmacies and grocery stores, areas that have seen demand for e-commerce increase during the pandemic.
Thanks to Delivereat, airasia Super App will be able to improve its existing offerings in these sectors. The app is now on a par with its biggest competitor, Grab, thanks to this acquisition, a partnership with PolicyStreet to offer auto insurance and its most recent ride-sharing launch.
Enable faster deliveries
Currently, cross-border deliveries from Teleport from KL to Penang require waiting times of between one hour, 4 hours and 24 hours. By expanding its passenger base, Teleport has the potential to strengthen its presence in Malaysia and make last mile deliveries faster.
While fresh produce and hot food remains a domestic service, Teleport’s hope is to use last mile capacities to enable cross-border parcel deliveries as well. Ultimately, Teleport’s plan is to move things across Southeast Asia as efficiently as possible, regardless of the package.
“We want consumers in one of the 232 cities in Southeast Asia to be within reach of 1-hour city delivery and 24-hour cross-border delivery at fixed and transparent prices,” said hoped for the still ambitious AirAsia subsidiary.
“Who knows, maybe one day hot food will become a luxury you can enjoy even across borders,” Pete reflected. It is hard to imagine such a world where cross-border food deliveries are viable as drivers are always limited by traffic and weather conditions. Could this indicate a potential launch of its drone deliveries soon?
Do not rest on its laurels
To monitor the results of this acquisition, the team will be looking at Teleport’s revenue and growth. Pete told Vulcan Post that the Delivereat acquisition is expected to contribute 20% more revenue to Teleport’s current 6-9% week-over-week growth by the end of 2021.
He added that airasia digital is expected to expand to Melaka and Johor Bahru by August 24 and to Ipoh by the end of this quarter, while further nationwide expansions will be announced in the months. future.
As with any business, AirAsia and its subsidiaries have received quite a bit of criticism for their operational efficiency. However, the main takeaway from what AirAsia has achieved during the pandemic with its planes on the ground is proof that the company is not one to rest on its laurels.
It is already considering the idea of separating airasia digital from its core airline business, which would reduce the complexity of managing both segments and ensure that its super app can grow with fewer restrictions.
Considering Grab’s monopoly as the favorite super app for years now, it’s an exciting time as a consumer to watch the airasia super app arrive with the certainty that it has what it takes to put the best of luck. his side.
- You can read more about the super airasia app here.
- You can read more AirAsia related content here.
Image Credit Featured: Pete Chareonwongsak, CEO of Teleport / Tan Suan Sear and Leong Shir Mein, Co-Founders of Delivereat
Our sincere thanks to