Sea Ltd., the Singapore-based owner of Shopee, has seen its stock rise over 300% since early 2024, driven by growth in ecommerce and its in-house logistics arm, SPX Express.

Shopee now leads the Southeast Asian ecommerce market, handling billions of parcels annually.

Research firm Momentum Works estimates SPX Express manages about 25% of the region’s logistics market as of 2024.

In Singapore, Shopee operates more than 3,500 collection points, including homes, shops, and lockers, and SPX Express delivers 90% of parcels the next day.

Sea’s market capitalization is approaching US$100 billion, making it one of Southeast Asia’s most valuable companies.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Hyperlocal delivery networks solve Southeast Asia’s unique logistics puzzle

Shopee’s SPX Express strategy directly addresses the region’s most persistent e-commerce challenge: delivering packages across thousands of islands and narrow urban alleys that traditional logistics can’t efficiently reach.

The network’s rapid growth from essentially zero market share in 2022 to 25% in 2024 demonstrates how community-based delivery fills a critical gap in Southeast Asian infrastructure1.

This approach becomes more valuable as global retail is projected to exceed $8 trillion by 2027, with delivery vehicles expected to increase by 61% in urban areas by 20302.

The model’s effectiveness shows in practical results: 90% next-day delivery in Singapore and nearly half of orders delivered within two days across Asia, performance levels that would be difficult to achieve through traditional logistics in the region’s complex geography.

2️⃣ Competition from entertainment-commerce hybrids threatens traditional e-commerce dominance

Despite Shopee’s logistics success, TikTok Shop has rapidly gained ground by combining shopping with entertainment, capturing 39% of Southeast Asia’s gross merchandise value compared to Shopee’s 58%3.

TikTok Shop’s revenue growth of 69% significantly outpaced Shopee’s 16%, showing how “shoppertainment” resonates with consumers who want engaging experiences alongside purchasing3.

The combined platforms now control 97% of the market, creating a strong competitive environment that has challenged traditional players like Lazada3.