Borzo Strategy to Strengthen Instant Delivery Service in Indonesia

The competition in the last-mile logistics industry in Indonesia is very tight, as can be seen from the abundance of players playing in this segment. The startup, which has been operating in Indonesia since September 2017, is now officially rebranded as “Borzo Indonesia”.

This is done after its parent company Dostavista pocketed $35 million in Series C funding in August 2021. Borzo became the sole brand used to unify the parent business spread across 10 countries.

Previously, the company used different brands in each country, for example, Dostavista(Mexico and Russia), WeFast (India), Click Entregas (Brazil), Quickers (South Korea), and Tanzhida (China).

Borzo Indonesia Country Manager Devi Siska said that the change in the new trademark gave new ammunition for the company to strengthen its focus on same-day delivery to more cities with an estimated four-hour delivery.

“Previously, Borzo was engaged in instant delivery, which was one hour to [destination]. The rest, after the rebranding, not too much has changed, only the name has been made more global,” he said.

Borzo Target Users

Borzo’s target users are business owners, whether on an individual scale, MSMEs, and social commerce who need delivery with prices starting from Rp. 8,000 for instant delivery in the first 4 km in Jabodetabek and IDR 6,000 for same day delivery.

The company is also API-connected with Shopify, WooCommerce, and Openchart. Its coverage area is spread over more than 45 cities, not only in the main city, but also in the second- and third-tier cities around the islands of Java, Sumatra, and Kalimantan-Sulawesi.

The expansion of Borzo’s services in Java is very rapid because almost all big cities have been covered by Borzo’s services.

“Bali and Madura have opened in the middle of this year and are experiencing good development. Sumatra is the second island with the largest distribution of Borzo. The islands around Sumatra are also the targets for Borzo’s shipments, such as Batam and Pekanbaru.”

Devi continued, next year the company will be more aggressive in entering more than 40 new cities so that more business owners can use instant and same day delivery solutions.

Unfortunately he was reluctant to elaborate further regarding the company’s overall business growth, including the number of fleets that have now joined Borzo.

It was only explained that Borzo’s active fleet which continued to take consumer orders was in the range of 10 thousand couriers. The company itself relies on a two-wheeled and four-wheeled fleet in sending orders to consumers, and operates 24 hours a week.

Providing Applications for Users

As a technology company, it is claimed that Borzo provides applications for business users that are already powered by the courier selection algorithm with the highest rating, and closest to the consumer’s position, so that the delivery duration will be much faster.

“The value we offer is competitively priced and can be integrated with APIs for an easier delivery process.”

Ordering Borzo services so far is available with three methods, through the website, application, and directly contacting customer service. Consumers can also choose a delivery schedule according to their needs and to various addresses in one order to save on shipping costs.

After the courier picks up the order, the consumer can also track the delivery process through the website and app. Even once the order is sent, there will be an SMS notification that will be automatically sent.

In an expansion of instant delivery services, the company recently released a Buyout feature that allows consumers to purchase goods with instant delivery services on Borzo.

The mechanism is that the courier will buy the goods at the shop/mall/stalls according to the address, name of the item, and the price stated in the order.

The maximum order to take advantage of this feature is IDR 300 thousand, the price paid is according to the purchase receipt, and payment is made in cash (for goods purchased), while for shipping costs with a top up payment.