Shipments Continue to Increase, Paxel Startup Expands to Three Islands

Paxel’s logistics startup recorded the number of one-day shipments until or same-day delivery continued to increase from year to year. The company also plans to expand the market by expanding beyond Java and Bali. COO Paxel Zaldy Ilham Masita said the company used a one-day delivery service strategy to reach consumers since its inception in 2018.

He claims the business model is in demand by consumers with the number of users that continues to rise from 86 thousand in 2018 to 600 thousand in 2019.

While the number of shipments reached 1.5 million or grew 650% throughout 2019 (year-on-year). Of this amount, 50% of them come from food delivery, the rest consists of fashion and beauty products.

The growth, according to Zaldy, illustrates the development of Indonesia’s small and medium enterprises (SMEs), especially in the food sector which increasingly relies on the same day delivery service. The company is optimistic that it can reach 3 million shipments in the first quarter of this year.

Paxel will Expand Outside of Java

One strategy is to expand to three islands namely Sumatra, Sulawesi and Kalimantan. “To Medan, Palembang and Makassar in the first quarter, while to Kalimantan in the second quarter,” Zaldy said when met in Jakarta on Friday (1/31).

Zaldy explained the reason the company chose to expand into the region was that the flight haul line was quite good. Moreover, one of the inter-island logistics partners, namely Garuda Indonesia. “Many alternative flight schedules to get there,” he said.

In addition, he said the region has many culinary locations that are targeted by the public. “Like Medan, Palembang, and Makassar it is a food source, as a culinary city,” he said.

The company will also explore the tier two and three regions in Java with a total of 15 cities, including Cirebon, Magelang and Pekalongan.

Until now, the company is only targeting big cities in Java and Bali, including Jakarta, Bogor, Depok, Tangerang, Bekasi (Jabodetabek), Bandung, Solo, Semarang, Yogyakarta, Surabaya, Malang, and Denpasar.

Same-day Delivery Service is on High Demands

Zaldy further said that public interest in food delivery through same-day delivery is greater because online sellers can get their money faster. Usually they only get sales money after three days according to the time of delivery using ordinary logistics services.

“From the buyer side, they can get any food or product they want quickly. Like Durian Ucok (from Medan), we can order the same-day delivery,” said Zaldy.

To use a same-day service, Paxel sets the conditions, that is, the goods to be sent must be received by the Paxel courier before 14.00. “On top of that hour, delivery will take place tomorrow,” he said.

This Year, Paxel’s Same-day Delivery Service Demands Has Increased from 2019

Based on data collected by the Paxel team in the holiday period late in 2019 and early 2020, namely 25 December 2019-2-2 January 2020, the number of food delivery transactions with the same day delivery experienced a surge with a total of more than two thousand buyers.

Bandung became the city with the most food delivery origins, reaching 45 percent, followed by Bogor 12 percent and Jakarta 11 percent. Whereas in terms of the location of buyers, most come from Bandung, Bekasi, and Bogor.

“We have our own way of how quality (food) is maintained. Starting from the smart locker, how the relay is facilitated safely, choose the cheapest, fastest route. Sorting using this software makes Paxel’s service guarantee different,” Bryant said.

Until last year, Paxel had around 1,400 couriers, an increase of 55% from the previous year. While the number of smart counters that became Paxel’s shipping hub reached 263 units spread across 12 cities in Java and Bali.