Lazada and Shopee are betting big on in-house logistics

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Hello readers,

Today’s newsletter is dedicated to the delivery agents and drivers who have been making sure that our parcels arrive at our doorsteps rain or shine, sleet or snow, or flood or landslide. I’ve seen updates of how some logistic startups’ couriers had actually rowed boats to deliver packages when roads were flooded in certain countries. That’s dedication on another level. So whether they work for a logistics firm or part of an ecommerce player’s in-house fleet, let’s remember the importance of these delivery heroes.

Today we look at:

• Why ecommerce firms in Southeast Asia are setting up in-house logistics
• How CXA’s pivot to a SaaS model is paying off off
• Other newsy highlights such as troubles at the Philippines’ first unicorn and Byju’s made another acquisition

PREMIUM SUMMARY

Moving into in-house logistics

Step aside, Ninja Van, Lalamove, and other third-party logistics companies (3PLs). The hype now is all around in-house logistics, which grew by more than 30% in volume in Indonesia and Vietnam last year.

• New parcel, who’s dis?: As the name suggests, in-house logistics refer to the internal handling of order fulfilment by ecommerce companies. Alibaba-backed Lazada and Singapore-based Sea’s Shopee are among the companies that have already adopted this.
• The pros: Not only does in-house logistics give an ecommerce player complete control over order fulfillment, but it also provides more flexibility in managing the customer’s experience. In addition, it can reduce fraud and has the potential to be a money-making venture in the long run.
• The cons: Developing and maintaining an in-house fleet requires a lot of resources, so investing in this could potentially slow down other areas of the business that drive growth. Furthermore, deliveries would likely cost less for 3PLs since they have more experience and resources than in-house players.

Read more: Does the dawn of in-house ecommerce delivery threaten third-party logistics firms?

PREMIUM SUMMARY

Going all in on SaaS