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2 million.
That’s the number of shipments Indonesian startup J&T Express processed per day in 2020, according to research by venture builder Momentum Works.
Despite achieving a hefty US$20 billion valuation within six years of launch and heading for an IPO in Hong Kong, J&T Express hasn’t received the attention it deserves. It’s one of the few Indonesian tech companies that aggressively target overseas markets – a trick that even super app Gojek hasn’t mastered.
Ecommerce logistics is a tough nut to crack, especially in last-mile delivery. Competition is intense and, generally, it’s hard for logistics players to stand out. It’s game over if these companies don’t have the scale.
J&T Express, however, has one crucial advantage: Its roots can be traced to Oppo, the Chinese smartphone company. J&T stands for Jet and Tony, named after its co-founders. Notably, Jet Lee was also Oppo’s Indonesia CEO and Tony Chen founded the smartphone maker in 2004.
The Oppo network has helped J&T expand regionally across Southeast Asia and establish a strong foothold in China, a “red ocean” market.
But J&T needs to find new sources of growth. Next on its radar are the Middle East and Latin America, where it can lean on a potential partnership with fellow Southeast Asian firm Shopee.
Is J&T Express’ global expansion the real deal or does it merely serve the narrative for its upcoming IPO? In this week’s Big Story, my colleague, Jofie Yordan, takes a look at all the cards that J&T Express has to play with to survive and thrive.
Our Hot Take this week highlights the power of the marketplace, which in the case of Amazon has grown to become one of its biggest cash cows in 2021. But the question remains as to whether this will tempt the US tech giant to take a crack at Asia again.
— Huong
THE BIG STORY
The keys to J&T Express’ rapid global expansion
Image credit: Timmy Loen
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