Transactions of Ninja Xpress, Lion Parcel, J&T Soar

Transactions of logistics companies Ninja Xpress, Lion Parcel, and J&T increased fourfold last year. One of the driving factors is the soaring use of e-commerce services amid the corona pandemic.

Ninja Xpress Country Head Ignatius Eric Saputra said services grew fourfold in 2020 compared to the previous year (year on year / yoy). The number of parcels delivered was more than 150 million last year.

The spike occurred due to online shopping trends during the Covid-19 pandemic. The company noted that the most significant increase was during discount parties such as 10.10 and the national online shopping day (Harbolnas) 12.12. Goods delivery even occurs in all parts of Indonesia. Last year, the distribution success rate through Ninja Xpress was 98%.

In addition to online shopping, demand for goods delivery at Ninja Xpress was boosted by Micro, Small and Medium Enterprises (MSMEs), which digitized businesses during the outbreak of the coronavirus. “The system we provide focuses on helping business operations to be easier and tidier,” Ignatius said in a press release, Wednesday (10/2).

Ninja Xpress presents the Ninja Same Day Delivery service to make it easier for social commerce players and other micro-businesses to face the soaring demand for delivery of goods with a fast Service Level Agreement (SLA), flat rates and hassle-free service options.

Ninja Same Day Delivery service is available for Jabodetabek delivery at a flat rate of IDR 15,000 per 3 kg. With this service, packages will be picked up on the same day with pick up at a maximum of 12.00 noon and package delivery to consumers between 14.00-22.00 WIB.

Marketplace Helps Logistics Development

A study from e-commerce company Lazada also revealed that 92% of digitalized MSMEs agree that the marketplace helps their logistics service needs. Therefore, Lazada provides its own logistics services.

“The technology in our logistics system also allows businesses to predict and analyze the demand and supply of their products over a certain period. This is to make it easier for them to plan their business,” said Philippe Auberger, Country Chief Logistics Officer, Lazada Indonesia in a press release, Tuesday (9 / 2).

Although some e-commerce providers provide their own services, logistics companies are still swamped with demand. Apart from Ninja Xpress, the volume of regular shipments with an estimated time of three to four days from Lion Parcel increased by 40% yoy.

The majority of items sent are clothes and accessories. This year, Lion Parcel wants to focus on working on the market in Java, because it accounts for 59% of the total industry. “One of our targets in 2021 is to maximize potential in Java through fast and economical delivery services,” Lion Parcel President Director Farian Kirana said in a press release last month (12/1).

J&T also Experienced an Increase in Transactions

J&T Express also recorded an increase in transactions last year. J&T Express logistics CEO Robin Lo said the number of e-commerce shipments increased 40% yoy per third quarter of 2020. “This is because people’s habits have changed, from previously shopping offline to online,” said Robin during a virtual press conference, September last year (9/1/2020).

At the start of the corona pandemic, the company experienced problems sending goods due to restrictions on access to air transportation in several areas. This is also the case with other logistics corporations. The Central Statistics Agency (BPS) also noted that the transportation and warehousing or logistics business contracted -13.42% yoy in the fourth quarter of 2020.

Chairman of Supply Chain Indonesia (SCI) Setijadi said, despite the annual contraction, the logistics industry has grown gradually since the corona pandemic. In the second quarter, for example, it contracted 30.8% and improved in the following quarter to -16.7%.

One of the driving factors for this industry is the high demand from e-commerce. Research by Facebook and Bain & Company estimates that the value of online shopping transactions in Indonesia is almost US$ 72 billion or around IDR 1,047.6 trillion in 2025.