The rise of Indonesia’s e-logistics startups

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The Robin to Batman, the Chewbacca to Han Solo, the Tik to the Tok: These are what e-logistics startups are to Indonesia’s logistics industry, as they help the ailing sector become more efficient in delivery while reducing costs. And in doing so, some of these startups became profitable before the pandemic, and they remain so even now.

Today we look at:

• The e-logistics startups that are on the up and up despite the pandemic
• The platform that can predict a company’s workforce
• Other newsy highlights such as WhatsApp’s new shopping feature and China’s removal ofTripadvisor from app stores

PREMIUM SUMMARY

They don’t disrupt, they enhance

Indonesia’s logistics sector is not doing as well as its counterparts in Asia. Traditional processes such as handling transactions via telephone and paper tracking remain as some of its biggest challenges. Covid-19 also made matters worse, but luckily, a new wave of e-logistics startups are here to help.

• Bring on the e-logistics kids: Waresix, Ritase, Janio, and Kargo are some of the top players in Indonesia’s e-logistics scene. And at least three of them have already achieved profitability.
• What do they do? These startups do everything from connecting shippers with warehouses and transporters to providing services like invoice financing, e-wallet cashless driver payment, and group buying. But they’re not out to disrupt logistics behemoths like DHL and FedEx. Instead, they’re here to enhance the market.
• Making waves: Kargo’s business has been growing close to 40% month-on-month on average since the pandemic, and Waresix is said to be valued at US$225 million, according to VentureCap Insights.

Read more about these profitable startups: Indonesia’s e-logistics startups deliver profit and growth amid chaos

STARTUP SPOTLIGHT

The platform that plans your workforce for you

Managers would know this: Workforce management is a time-consuming task. So China-based GaiaWorks, which recently raised US$76.5 million led by GGV Capital, Tencent, EDBI, and Index Capital, aims to make it simpler.

• Founded in 2009, GaiaWorks provides cloud-based solutions that enable users to predict workforce demand, manage time and attendance, as well as analyze and improve employee and sales efficiency.
• Achievements: The company claims to have served over 1,500 customers that include restaurant chains and display manufacturing companies, and 5 million workers across the Asia Pacific, Europe, and North America.
• Opportunities: The global workforce management market will grow from US$6 billion in 2020 to US$9.3 billion by 2025, according to forecasts from research firm MarketsandMarkets. China is also the world’s largest workforce market.

QUICK BYTES

1️⃣ WhatsApp adds to cart

The Facebook-owned instant messaging service will add a shopping feature to its app ahead of the holiday shopping season. This comes after WhatsApp launched a number of commerce features, such as QR codes and the ability to share catalog links in chats.

2️⃣ Shares of JD Health soars

China’s biggest online healthcare platform made its debut on the Hong Kong stock market yesterday, and it was met with positive response. JD Health’s stock rose by 56%, pushing its market value to roughly $44 billion. So far, 2020 has been great for the company: Its revenue rose 76% to US$1.35 billion in the first half of the year, and it expects to reach 100 million users by the end of 2021.

3️⃣ China spring-cleans its app stores

Around105 apps were removed from the country’s app stores under a new campaign that aims to prevent the spread of content related to pornography, prostitution, gambling and violence. One of the apps that got the boot was US travel firm Tripadvisor.

4️⃣ Reliance Jio to launch 5G next year

The Indian telecommunications company has announced that it will lead the rollout of 5G technology in the country in the second half of 2021. Jio Platforms, the firm’s digital services arm, raised nearly US$14 billion from investors such as Google and Facebook earlier this year.

5️⃣ Tencent invests 9-figure amount into a game developer

Wizard Games, which creates “leisure competitive” online titles, has raised several hundred million yuan from Tencent. Founded in 2012, the company is the developer and publisher behind the shooter game Battle Teams, which claims to have accumulated over 500 million users worldwide and 30 million monthly active users.

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