Thailand wants to be Southeast Asia’s logistics hub. These startups are on the case

Photo credit: Florian Wehde / Unsplash

All roads lead to Bangkok.

The capital is the focal point of Thailand’s economy, with almost a quarter of the country’s population living in the area.

Renowned for its congested streets and seemingly ceaseless traffic jams, Bangkok is reliant upon agile two-wheeler transport when people and packages need to get across town quickly. That has made it one of the most important testing grounds for Southeast Asia’s growing crop of tech-enabled logistics startups, several of which are upending the informal motorbike-courier industry with online marketplaces.

But it isn’t all about “on-demand” courier services. The kingdom’s position at the center of Southeast Asia means it’s well-placed to become the region’s logistics hub.

This centrality has been reflected in massive investments into infrastructure over recent years, including the expansion of deep-water ports, and the ongoing construction of high-speed rail connections.

The country’s government recently approved the Eastern Economic Corridor, a US$45 billion project aimed at turning several of Thailand’s eastern provinces into technological, manufacturing, and transportation powerhouses.

Foreign investors have sensed opportunity. Chinese internet giant Alibaba has reportedly committed US$320 million to invest in Thailand, and is said to want to create its own logistics hub in the kingdom. Fellow Chinese ecommerce player JD.com has also been pushing into Thailand, signing a US$500 million joint venture deal with local retail conglomerate Central Group in September 2017.

All this interest and investment is providing fertile ground for logistics startups, both homegrown and imported from neighboring markets.

Tech in Asia has listed some of the key players below. We’ve broadly divided them into three groups: last-mile delivery services; longer-distance haulage; and providers of logistics tech and software solutions.

Intercity and long haul

Deliveree

Going against the “last-mile” grain, Deliveree sees itself as more of a “first-and-mid-mile” logistics player.

The startup’s sweet spot is bulkier loads and cargo that need to be transported between cities or over long-haul distances. Its marketplace connects individuals and businesses that have larger consignments to move with its network of over 40,000 trucks, vans and other vehicles, operated by independent drivers.

Last mile

Logistics tech providers