Fast delivery service heats up as new players turn up

Besides big freight and forwarding companies, numerous startups with technology apps have joined the fast delivery market.

fast delivery service heats up as new players turn up hinh 0

After dislodging Uber out of SE Asia, Grab has become a big player in the shipping service market. Its numbers of customers and drivers have increased, while there is no matching rival in the region.

The fast delivery market is now witnessing stiff competition between traditional delivery firms and technology-applied companies. Holding a network of 7 million drivers, agents and sellers throughout South East Asia, Grab has reason to believe in its success in the Vietnamese market.

However, analysts say that a market like Vietnam will attract many players. The appearance of new technology-applied shipping firms such as Go-Viet (backed by the unicorn Go-Jek), Super Ship and Busship have added to the competition. 

 In the inner-city delivery market segment, analysts say ‘there is no telling which cat will bite the other and prevail’.

 There are numerous players in the market segment, including VNPost and ViettelPost, which have launched service solutions specifically designed for inner-city delivery; technology apps that serve passenger and cargo carrying such as Grab: and delivery firms that carry specific kinds of goods such as Now, which specializes in delivering food and flowers. 

 In addition, there are also freelance shippers and shippers working for private shops.

 Analysts estimate that the number of inner-city delivery orders could be up to 150,000 per day, while existing service providers can satisfy only 20%.

 They noted that e-commerce websites tend to join forces with delivery apps to optimize delivery solutions in inner cities. Shopee, for example, has its own staff for shipping, but still cooperates with Giao Hang Nhanh and Giaohangtietkiem to expand the network. The cooperation between Sendo and AhaMove is another example.

 Ahamove’s CEO Truong Nguyen affirmed that the delivery market, especially the on-demand delivery market, is very bustling. For AhaMove, this could be both a competitive relationship and a co-operative opportunity for growth. 

 For example, Now, in theory, can choose AhaMove as a partner, and hire AhaMove when necessary. Many companies tend to hire third parties to gather strength in the core business.

 According to Truong, the companies join ecosystems with their own structure. Now and Foody, for example, can create a food ecosystem, in which Foody reviews and suggests restaurants, while Now delivers goods from the demand of restaurants on Foody.

 However, businesses still want to establish a delivery team of their own to consolidate brands and optimize costs. The domestic e-commerce market is still in the early development stage and is expected to see fast growth in the time to come.


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