TheLorry’s got a fight on its hands, and Unilever’s backing it to win

Photo credit: TheLorry

Bringing logistics into the “sharing economy” is far from a new idea. In Asia Pacific alone, startups like Hong Kong unicorns GoGoVan and Lalamove as well as Singapore’s Ninja Van have secured tens and hundreds of millions of dollars to do just that. Traditional logistics providers like Singapore Post and DHL are also increasingly turning to tech solutions to stay in the game.

It might look like smaller players such as TheLorry have reduced chances of succeeding in this already crowded market. But investors seem to think differently.

Last month, the Malaysian startup secured an undisclosed strategic investment from global consumer goods giant Unilever. This followed a US$5.85 million series B raise led by FirstFloor Capital, with the venture arms of Malaysian telco Axiata Digital and media giant Singapore Press Holdings also pitching in.

TheLorry’s co-founders – Nadhir Ashafiq and Goh Chee Hau, who met while working in aviation logistics – think they’ve found a niche.

GoGoVan and Lalamove are focused on last-mile deliveries and follow an asset-light approach built around self-employed drivers – much like ride-hailing firms. Ninja Van, on the other hand, competes with commercial-scale logistics providers, owns its own vehicles and warehouses, and employs its own drivers.

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TheLorry falls somewhere in between these two models. Much of its business comes from companies and individuals that need to move larger loads over longer distances. Its network of driver-partners includes employees of small haulage firms that have their own fleets and self-employed truckers with their own or rented vehicles.

It targets the bulky segment which often requires not just a driver but also a team of movers and a multi-ton heavy goods vehicle, as opposed to smaller packages which can be delivered by a single driver on a bike, or in a car or regular-size van.

“We are, in short, like Grab and Uber, but for trucks,” managing director Goh tells Tech in Asia.

There are a handful of other competitors in the space, such as Thailand’s Deliveree. It has expanded to Indonesia and the Philippines, where it operates as Transportify. GoGoVan provides a corporate service in addition to its core last-mile offering, while Gojek’s Go-Box delivers larger packages that can’t be ferried via motorbike.

But Goh claims TheLorry’s laser-like focus on freight and larger shipments sets it apart. He adds, “We do not offer any two-wheel service.”

Shifting focus

Since launching in 2014, TheLorry has expanded beyond Malaysia, entering Singapore in 2017 and Indonesia and Thailand last year.

Goh says the startup’s core team is about 100-strong, while it has around 10,000 drivers using its platform across all its markets, based on registered user numbers. Truckers and fleet owners sign up and have a three-hour training session with TheLorry before being onboarded to the platform.

Unilever investment

New opportunities

Bumpy road ahead

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