Delivery business growing, thanks to O.L business

JAKARTA. The growing online business during the recent years has developed the delivery service business. Some of the entrepreneurs in this sector become more massive in launching business expansions. Some new players even have participated in the business sector.

General Chairman of Association of Indonesian Express Delivery, Post, and Logistics Companies (Asperindo) Mohamad Feriadi said that the e-commerce has been developing rapidly. “This has driven the growth of delivery service industry, as the logistic service serves the e-commerce business,” he told KONTAN, Wednesday (7/12).

The business potential of delivery service reaches Rp 50 trillion per year. Let alone, the business can grow up to double digits. “In terms of industry, the delivery service may grow in average at 14.7% in the next year,” he added.

The rapid growth has attracted new players to participate in the delivery service business. To date, Asperindo has recorded 190 memberships. Definitely, the number will continue to grow. In average, the membership increases by around 5%.

One of the new players is SAP Express. Established in 2014, the company claims to have positive business growth in every year.

According to General Manager Business Development and Retail of SAP Express Muhammad Azhary, the company is optimistic to reap the income target of Rp 150 billion by the end of 2016. “We are optimistic to achieve the target, since the industry in average grows by 20%-30% per year,” he told KONTAN.

Therefore, SAP Express will continue to expand the network. To date, SAP has secured 47 branches. Azhari did not specify the target of network expansion. However, Azhari expects that the company’s income may grow by 33.3% to Rp 200 billion in the next year.

Another new player, J&T Express, which just started operating in 2015, also recorded significant business growth. Accordng to Director of J&T Express Robin Lo, the company’s business continues to grow, thanks to the online business. Understandably, about 50% of the company’s incomes of delivery service derive from the delivery of online shopping goods.

Without mentioning the number, he is optimistic that the J&T Express business will continue to grow along with the e-commerce business growth. (Muhammad Farid/Translator)