Last-mile logistics startup Zyllem to ‘cease operations’ in Singapore

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Last-mile logistics startup Zyllem may have run its own last mile as far as deliveries are concerned. According to a statement sent by the company to its customers and shared with Tech in Asia, Zyllem is discontinuing its services in Singapore. Tech in Asia understands the startup has let a large part of its team and delivery drivers go.

Rumors of this first reached us late last night as Zyllem customers were informed their next-day deliveries would not be fulfilled from August 31 onwards.

See: In Southeast Asia, the real money is in logistics, not ecommerce

The startup says it wants to “realign our resources to focus solely on the software business.” It doesn’t share more details than that, but it sounds like it wants to zoom in on connecting different logistics providers through software. The company will cease delivery services and operations by September 7.

In an email to Tech in Asia, Zyllem says that the pivot to its software business will be more beneficial to its shareholders.

Zyllem, formerly RocketUncle, was founded in Singapore in 2014. It connected logistics suppliers to businesses and consumers, promising same-day delivery for documents and parcels. It also rolled out a next-day service in June, promising fast delivery of large volumes at fixed prices.

In August 2015, Zyllem told Tech in Asia it had a database of up to 5,000 drivers and growing in the double digits month-on-month. In the same year, it expanded its operations to Malaysia and the Philippines.

Money floods into logistics

Logistics is a fiery battleground in Southeast Asia. Singapore’s Ninja Van, for example, has expanded into Malaysia and Indonesia and focuses its tech on fleet management and determining the fastest and most efficient delivery routes. It raised US$30 million in a series B round in April.

Thailand’s aCommerce recently raised US$10 million to expand to Malaysia and re-focus on Singapore, where it had to downsize in 2014. The company wants to be a one-stop shop for online commerce businesses, providing service ranging from logistics and last-mile fulfillment to marketing and tech support.

SingPost, Singapore’s postal service, has doubled down on ecommerce and logistics – a boon to its 2015 financials, albeit not without some growing pains.

Update: Zyllem has since pivoted to a software solutions provider for logistics operators. It announced its new direction in early 2017.