Considering the development of the e-commerce market in Indonesia which grew by 150% in 2018, Paxel’s CEO, Bryant Christanto, assessed that there is still a problem within it. In this case, he said that the lack of fast, reliable, and affordable shipping services has become the main factor.
He said that this issue has hampered online-based businesses, especially SMEs (Small and medium-sized enterprises). This then becomes Paxel’s market target in the logistics business. It offers solutions for SMEs to expand their business by introducing quick and inexpensive shipping services.
“We aim to give more benefits for SMEs and e-commerce by proving more reliable, fast, and affordable services. This is the main reason why we started Paxel Indonesia two years ago.” Bryant explained during his dialogue with Muhammad Gibran at CNBC Indonesia on Wednesday (9/25).
“We also consider any modern technology which has already been implemented in Indonesia right now. Then, we use it to innovate and create a completely different model. As a result, it can be more reliable, faster, and more affordable,” Bryant added.
Meanwhile, according to a survey conducted by Paxel & Provetics, people considered that delivery speed is far more important than a cheap shipping price. As a response to this survey, Bryant explained that modern people, especially millennials, now prefer something instant and fast.
As a result, they would like fast delivery rather than the cheap one. On the other hand, the presence of same-day delivery introduced by Paxel was also found to raise the number of shipment volume in many SMEs. A wider service range is considered as one of the reasons.
“According to the survey, 97% of respondents experienced shipping volume growth. They said that a wider market range is one of the reasons. For instance, Pisang Goreng Bu Nanik (Bu Nanik’s Fried Banana) which is previously selling in Jakarta only now can deliver to other cities,” Bryant said.
Bryant also emphasized that Paxel’s same-day delivery currently doesn’t have many competitors compared to other services offered by the Indonesian logistics market. He explained that nowadays there is only a delivery service within a city that is fast and intercity service which is less fast.
“We come to complement the existing service by offering same-day delivery to every city across Java and Bali. The time required to ship from one city to another would be the same. For example, Bandung to Surabaya would take 10 hours and so does Bandung to Bali,” Bryant added.
Thus, thanks to this service, Bryant said that SMEs and e-commerce can now deliver to other cities within one-day delivery. He said that it is a great market for Paxel. As the platform delivery is developed more by Paxel, more SMEs and e-commerce can take advantage of the service.