Shipper Logistics Startup Business Grows 6 Times Thanks to E-Commerce
Logistics aggregator startup Shipper has recorded business growth six times since the beginning of the year. This is boosted by the trend of online shopping in e-commerce during the Covid-19 pandemic.
CMO Shipper Jessica Hendrawidjaja said one of the variables driving business growth was the increasing number of partner networks such as e-commerce and online merchants.
“We are enablers who support business development. So, when they (e-commerce and online merchants) grow, we also benefit,” said Jessica at the Shipper Journalist Academy event, Thursday (14/10).
Shipper transactions are also increasing during the National Online Shopping Day (Harbolnas) shopping festival. Shopee, for example, recorded three million visits in the first hour of 12.12 2020.
The record of user visits to Shopee increased by eight times compared to Harbolnas 12.12 2019. This e-commerce also managed to sell 12 million products within the first 24 minutes of Harbolnas 2020.
Facebook and Bain & Company also estimate that the value of online shopping transactions in Indonesia will be nearly US$ 72 billion or around IDR 1,047.6 trillion in 2025. This figure has increased compared to the initial projection of US$ 48 billion.
The Logistics Sector Makes a Profit during the Covid-19 Pandemic
Based on Ken Research’s report, the trend of Indonesian logistics market revenue continues to increase until 2024. Logistics revenue in the country is predicted to be US$ 220.9 billion last year and US$ 300.3 billion in 2024.
This includes freight, warehousing, courier, express, and parcel. In addition, there are value-added services and cold chain logistics segments.
Another variable for Shipper’s business growth is the rapid growth of warehouses. At the beginning of last year, Shipper only had 20 warehouses. Now there are 300 warehouses in 35 cities.
Co-Founder and COO Shipper Budi Handoko said Shipper chose the logistics sector category as an aggregator. The potential is considered great.
Because Shippers can attract various players, ranging from e-commerce such as Shopee, Lazada to Tokopedia, shipping service providers such as JNE and J&T, as well as Micro, Small and Medium Enterprises (MSMEs).
“So, we can act as an enabler of all logistics ecosystems. From fragmented to non-fragmented,” he said.
In terms of monetization, Shipper does not charge a fee to users, but instead takes a commission from partners for service requests through the Shipper platform. The company also monetizes warehousing services, such as access in and out, security, to insurance.
Shipper has secured US$63 million Series B funding this year, led by DST Global Partners and Sequoia Capital India. Previous investors who participated were Floodgate, ProsusVentures, Lightspeed, AC Ventures, Insignia Ventures, and Y Combinator.
Shipper received the fresh funds less than a year after securing Series A funding in June 2020. Head of External Affairs Shipper Wilson Andrew said, Shipper will use the funding for two main things, namely investment in systems and technology, as well as adding an operational network.
“We are increasing the scope of the warehouse as well as the scope of our expedition partners,” he said. Shippers also began to develop the export or international shipping market. “We initially focused on Asia,” said Wilson.
Partnering with LOGOS, Operate Superior Warehouse Based on Digital Technology
Entering the first quarter of 2021, the company manages around 161 warehouses with a total land area of approximately 400,000 m2, while at the end of the second quarter of 2021 it has grown to 222 warehouses with a total land area of close to 600,000 m2 spread over 35 cities throughout Indonesia.
Shipper has partnered with LOGOS, a leading property specialist in the Asia Pacific region, for two of its flagship warehouses to support business development in Indonesia.
LOGOS owns more than 8.9 million sqm of properties that are running and under construction, with a total value of US$17 billion spread across 10 countries in Asia Pacific.
One of Shipper’s flagship warehouses is the LOGOS Metrolink Logistics Hub in the Bekasi area, West Java. With an area of around 5,000 m2, this warehouse has been operating since 2020 and has accommodated the fulfillment process of Shipper’s customers.