Logistics’ answer to Uber lands $100m funding
October 24, 2017
Hong Kong-based same-day delivery company Lalamove, which is trying to operate logistics on an Uber-like model in south-east Asia and China, has completed a $100m series C funding round.
The round was led by ShunWei Capital, a venture capital firm that invests in growth stage start-ups.
“Lalamove is an important investment for us in the mobile logistics sector,” said Cheng Tian, a partner at Shunwei Capital. “We foresee strong growth in last-mile delivery and this has been reflected in Lalamove’s growth and performance. In only a couple years, Lalamove’s standardisation, speed of service, lean operations and execution strategies have all drastically improved efficiency, lending to their excellent reputation across Asia. Their resilience and continued efforts to innovate have allowed them to lead in the last mile delivery business.”
Lalamove leverages the power of the web, mobile app technology and the sharing economy to provide same-day delivery services for SMEs that require fast, on-demand delivery services. In July 2017, the company reached the milestone of providing delivery in 100 cities, servicing more than 15 million users with its operations supported by over two million drivers. Lalamove continues to expand rapidly across China and south-east Asia.
“After our series B, we set out an ambitious goal to achieve leading delivery coverage across Asia and we’ve managed to exceed our expectations,” said Shing Chow, founder and CEO of Lalamove. “We will continue to quickly expand into cities where we feel we can provide the simplest and fastest delivery service in the market.”
This latest investment round includes participation from several previous investors including Xiang He Capital and MindWorks Ventures. MindWorks Ventures partner David Chang said: "Our confidence in Lalamove and its team is reflected in our participation of five consecutive funding rounds. This new round of financing will further widen Lalamove's dominance as the regional leader in the on-demand logistics space."
Aside from market expansion, this funding will be used to make investments into talent across all parts of the organisation, to build product features and to allow businesses more direct access to Lalamove’s large fleet of drivers. One example is Lalamove’s API integration service that helps SMEs leverage on-demand delivery technology through their own business services.
“Delivery of information takes seconds, but delivering physical goods is still relatively slow,” said Shing Chow. “We want to change that. We want delivery to be measured in minutes, not days. Our average order-to-delivery time is very quick at 46 minutes, but we want to achieve even more. ShunWei's investment will be extremely beneficial as we continue to expand and move towards our vision of providing the fastest and simplest delivery possible.”
Lalamove is an on-demand logistics company that matches drivers with customers and SME businesses to fulfil same day deliveries. Its mission of making local deliveries faster and simpler is achieved through instant order matching, real-time GPS vehicle tracking, round-the-clock service and a driver rating system.