AirAsia Teleport shares SEA growth plans following the acquisition of Delivereat


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AirAsia revealed on August 18 that his logistics department, Teleport, will buy the Penang delivery platform Delivereat for $ 9.8 million. The contract is worth Teleport for 300 million US dollars, and the logistics company will welcome the venture capital company Gobi Partners boarded.

“This is a 100% acquisition in which Delivereat will pass into full responsibility under the umbrella of Teleport,” Pete Chareonwongsak, Teleport’s CEO, told Vulcan Post. “We will work with airasia food the transition and boarding team of Delivereat’s food retailers on airasia’s food platform as seamlessly as possible by the fourth quarter. ”

This means that Delivereat customers will still be able to order airasia food from their favorite retailers, and Pete shared that a fleet of startups of approximately 4,000 drivers will also be loaded into the Teleport fleet by September 2021.

Delivereat founders Leong Shir Mein and Tan Suan Sear will join the management team of Teleport and airasia digital.

At a higher level as a great app

It is a known fact that the goal of AirAsia is to become the leading super application of ASEAN for a long time, accelerated by the pandemic that suspended air services. But to get there, they have to take a significant market share in Malaysia with popular offers, and the acquisition of Delivereat will play an important role in that plan.

Delivereat delivers an extensive and competitive delivery network as quickly as possible in larger cities, where Teleport does not have a strong presence, e.g. Penang, “Pete described. “The goal is not only to expand food delivery space, but also to connect Penang with its growing potential to the rest of ASEAN with our ability to deliver across borders within 24 hours.”

Founded in 2012, Delivereat has delivered more than a million orders to date and has offered on-demand food and express delivery services. Its 4,000 retailers consist of restaurants, wet markets, pharmacies and groceries, sectors in which increased demand for e-commerce was recorded at the time of the pandemic.

Through Delivereat, the airasia Super App will be able to improve its existing offering in these sectors. The app is now on par with its biggest competitor, Grab, thanks to this acquisition, a partnership with PolicyStreet offers car insurance, and the latest launch.

Enabling faster deliveries

Currently, cross-border Teleport deliveries from KL to Penang require a waiting time between an hour, 4 and 24 hours. By expanding its driver pool, Teleport has the potential to strengthen its track in Malaysia and meet last-mile deliveries faster.

While fresh produce and hot food remain a domestic service, Teleport hopes to take advantage of last mile opportunities to enable cross-border package delivery as well. Finally, Teleport’s plan is to move things across Southeast Asia as efficiently as possible, regardless of the package.

“We want consumers in any of the 232 cities in Southeast Asia to be at hand for 1-hour in-city delivery and 24-hour cross-border delivery at flat and transparent prices,” the ever-ambitious AirAsia subsidiary hoped.

“Who knows, maybe one day hot food will become a luxury that you can enjoy even across the border,” Pete thought. It is hard to imagine such a world in which cross-border food delivery is sustainable because drivers are still limited by traffic and weather conditions. Could this indicate a potential trigger its deliveries to drones soon?

They do not rest on their laurels

In order to monitor the results of this acquisition, the team will deal with Teleport’s revenue and growth. Pete told the Vulcan Post that the acquisition of Delivereat is projected to contribute an additional 20% of revenue to Teleport’s current growth of 6-9% per week until the end of 2021.

He added that airasia digital will expand to Melaka and Johor Bahru by August 24, and Ipoh by the end of this quarter, while further expansions across the country will be announced in the coming months.

Like any business, AirAsia and its subsidiaries have received quite a bit of criticism for their operational efficiency. However, the main conclusion from what AirAsia achieved during the grounded pandemic is proof that the company cannot rest on its laurels.

An idea is already being considered splitting digital airasia from its core business as an airline, which would reduce the complexity of running both segments and ensure that its super application can grow with fewer constraints.

Considering Grab’s Monopoly as a favorite super app for years, it’s an exciting time for the consumer to see the airasia Super App come with confidence that it has everything it takes to equalize the odds in its favor.

  • You can learn more about the airasia super app here.
  • You can read more content related to AirAsia here.

Featured image: Pete Chareonwongsak, CEO of Teleport / Tan Suan Sear and Leong Shir Mein, co-founders of Delivereat


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