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Hello reader,
I have plenty of empathy for delivery drivers here in Hanoi now that we’re days away from the Lunar New Year break.
With the roads busier than ever as the entire city gears up for the festivities, I dread even making a 15-minute journey across my district, afraid it might turn into 45 minutes in traffic. I can’t imagine traversing the whole city at this time of year every day, as delivery drivers have to.
The tough conditions they work in reflect how cutthroat logistics is across Southeast Asia, largely thanks to the ecommerce boom.
Today’s featured story dives into how logistics major Ninja Van is coping and how its decision to move away from a growth-at-all-costs mentality seems to have paid off.
Today we look at:
- Ninja Van’s financials
- An India-US space collaboration program
- Other newsy highlights such as Trump’s promise to get TikTok back online in the US and Indian hospitality giant Oyo’s potential IPO
Premium summary
How Ninja Van hopes to deliver a profit
Image credit: Timmy Loen
Logistics major Ninja Van has had an up-and-down couple of years amid the ecommerce logistics price war.
Things now appear to be looking up for the Singapore-based firm. CEO Lai Chang Wen says the company is “on track” to hit EBITDA breakeven by June.
- Profit push: Ninja Van’s overall revenue fell on a year-on-year basis, according to its audited financial statements ending June 2024. However, the drop came with a much larger reduction in its operating loss as the firm shifted away from a growth-at-all-costs mindset.
- Trading places: The company operates in Singapore, Malaysia, Indonesia, Thailand, Vietnam, the Philippines, and China. Its performance across countries changed significantly in the 2024 financial year. For example, revenue in Indonesia – where competition is particularly fierce from other third-party players and the in-house logistics operations of ecommerce platforms – declined by US$90 million.
- Belt tightened: Cost-cutting was a focus for Ninja Van in the last financial year. It conducted a round of layoffs in April 2024, shedding 10% of its tech staff across Southeast Asia. The firm also laid off 5% of its staff in junior tech roles in Singapore in July 2024, which will be reflected in its FY 2025 financials.
Read more: Revenue dips, losses shrink: Ninja Van eyes June profit
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