Cash crunch sparks SEA logistics shift

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Hello readers,

Shopee’s decision to terminate its partnership with J&T Express for standard and economy shipping in Indonesia came as a surprise.

So far, only J&T has matched the rates of Shopee’s in-house logistics fleet, SPX Express, on the platform.

This move has sparked debate on social media, raising questions on Shopee’s real reason for ending the partnership. In a statement to Tech in Asia, the company says the decision was made “based on our business evaluation this year.”

While their partnership in other countries looks intact, this development undoubtedly poses a major loss for J&T, considering Indonesia is Southeast Asia’s largest ecommerce market.

A price war has gripped the region’s ecommerce logistics industry in recent years. At the same time, ecommerce and logistics enablers have been aggressively expanding.

AnyMind Group, for instance, has grown its presence in Southeast Asia by acquiring local players such as DDI in Indonesia and Arche Digital in Malaysia. Philippine-based Etaily has also entered Singapore and Malaysia.

Amid declining funding over the past three years, players in both the logistics and enabler sectors are working to stay afloat and grow without relying on fresh capital injections.

How they adapt in this shifting landscape will determine who thrives – and who gets left behind.

— Jofie Yordan, journalist at Tech in Asia

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