Paxel is Optimistic that PPKM Can Boost Its Business Revenue

The logistic-based startup, Paxel is optimistic that the government’s decision to extend the implementation of restrictions on community activities (PPKM) until February 8, 2021 will have a positive effect on its business growth.

Co-Founder of Paxel, Zaldy Ilham Masita said that throughout 2020, the company could grow well due to the higher volume of shipments between the same day (same-day delivery), especially during the Large-Scale Social Restriction (PSBB) policy in several regions.

“We are experiencing an average growth of up to 15-20 percent every month and adding up to 1.2 million users,” he said, Thursday (28/1/2021).

According to him, during the PPKM policy, the logistics sector is a field that can still run and this is in line with the stronger adaptation of consumers to shopping online compared to the beginning of the pandemic.

“So seeing this, we are very optimistic during PPKM that the company can grow well, even until this year’s Ramadan,” he said. Furthermore, Zaldi said the anticipation that the company was preparing was to add new cities served by Paxel and cooperate with third parties.

According to Bisnis records, this courier service company is collaborating with Blue Bird Group to issue same day goods delivery products in cities measuring 5-20 kilograms (kg). The product, called PaxelBig, is expected to deliver up to 200,000 shipments per day.

“In addition, we are opening a new service, namely Paxel Big for same-day shipments weighing above 5 kg, at a flat price,” said Zaldi.

According to a study conducted by Google, Temasek, & Bain (2020). E-commerce transactions in Indonesia increased by 54 percent, namely to US$ 32 billion compared to the previous year which was at US$ 21 billion.

Changing Shopping Patterns, Logistic Startups Will Reach Out

Logistics startups are predicted to experience a spurt in their business growth in 2021 along with the implementation of restrictions on community activities (PPKM). According to Edward Ismawan Chamdani, Treasurer of the Indonesian Venture and Startup Capital Association (Amvesindo), the Covid-19 pandemic that has paralyzed the Indonesian people for nearly a year has changed their shopping habits from offline to online.

“PPKM and the pandemic period, in general, have made shopping patterns for people, who usually go to retail stores and malls, are now accustomed to being online. The effect is of course on last-mile logistics services and intercity cargo,” he said when contacted by Bisnis.com, Tuesday (26/1/2021).

Furthermore, he saw the stretching of the electronic commerce sector (e-commerce) which continues to grow exponentially. It has an impact on the logistics sector’s growth. According to a study conducted by Google, Temasek, & Bain (2020).

E-Commerce Transactions have Increased since the Pandemic Began

E-commerce transactions in Indonesia have doubled since the Covid-19 pandemic began, amounting to US$ 32 billion or an increase of 54 percent from 2019’s figure. Edward continued that several logistics players who focus on the e-commerce sector will get an abundance of transactions with a percentage similar and will increase significantly in 2021.

“The growth of e-commerce certainly increases traffic and revenue for logistics startups that are proportional to the segment’s portion. The habit during PPKM also seems to be continuing with the company’s policy of continuing to apply long-distance working patterns so that the frequency of leaving the house has arguably decreased, “he said.

However, Edward said that in addition to increasing e-commerce business activities, currently logistics players also get an abundance of transactions from government distribution that need to be utilized properly.

“Distribution of government assistance and distribution of vaccines. This should be used. Then, e-commerce customers are increasingly eyeing the same-day service [same day delivery]. This is an opportunity for logistics players to be more efficient and quick to serve existing traffic, “said Edward.