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Indonesia: Gojek, Paxel expand intercity delivery service to three more cities
Homegrown ride-hailing giant Gojek has teamed up with app-based logistics provider Paxel to expand its intercity delivery service to reach Semarang and Surakarta, Central Java, as well as Yogyakarta, amid surging demand during the health crisis, the companies announced on Wednesday.
Earlier in April, the two firms launched the GoSend intercity delivery service to transport goods between Greater Jakarta and West Java capital Bandung, with the exception of Bogor.
“Since then, demand for the service has jumped by three-fold,” Gojek head of logistics Junaidi said in a press briefing.
Demand for GoSend itself rose by 90 percent between March and July, with food and beverage products topping deliveries, followed by apparels, he added.
Indonesia recorded its first cases of COVID-19 in March and has since implemented large-scale social restrictions (PSBB) in several regions to contain the virus, forcing many people to stay at home.
“Consumer behavior has shifted during the pandemic from going to brick-and-mortar stores to online shopping. This phenomenon has increased demand for delivery services such as GoSend,” Junaidi said.
The intercity delivery service will also be equipped with live-tracking and end-to-end services.
“We provide live-tracking and package insurance, which enables us to compete [with logistics companies]. Our pick-up and shipment process is also quick, as we are focusing on same-day and next-day delivery services, and our prices are competitive.”
According to Gojek’s presentation, the intercity delivery service will cost between Rp 15,000 (US$1.02) and Rp 30,000 for packages weighing up to 5 kilograms. Packages are also covered by insurance worth up to Rp 10 million.
Meanwhile, Paxel cofounder Zaldy Masita said the collaboration with Gojek extends beyond operational services but also includes technological system integration.
“We are collaborating from the operational standpoint and IT system. Furthermore, Paxel now also accepts GoPay as a means of payment.”
Zaldy added that the service also implemented special delivery procedures for food and beverage products using Paxel’s chillers and coolers.
“There are no other logistics companies that are focusing on food products. Alongside GoSend, we want to cater to the needs of culinary MSMEs [micro, small and medium enterprises] by providing delivery services for temperature-sensitive products.”
Paxel reported that demand for the company’s logistics services has more than doubled since the COVID-19 outbreak started.
MSMEs and retail users dominate 85 percent of the demand.
“MSME potential, especially in the food and beverage sector, is huge in Central Java. Yogyakarta and Semarang are famous for their foods and we would like to cater to that potential,” Zaldy said.
Source: https://www.thejakartapost.com/news/2020/08/27/gojek-paxel-expand-intercity-delivery-service-to-three-more-cities.html