Lalamove Business Model: Insight into Lalamove’s Facets
We have seen an increase in countless start-ups that have succeeded in reaching unimaginable heights due to technology’s demonstration of its ability to disrupt markets and generate new unicorns. Every service industry, including the banking and hospitality industries, has had to keep up with the most recent technological advancements to be competitive.
Are you looking for a delivery app for your grocery store or restaurant business? Or do you need to send a package to a relative who lives in another area of the city? Or would you want someone to carry your groceries to your house?
Lalamove is the simple answer to the above problems.
Lalamove, founded in 2013 and debuted in Singapore in 2014, has impacted many industries, including e-commerce, retail, wholesale, events, and food and beverage. E-commerce is one of the major industries where Lalamove assists merchants in swiftly and effectively meeting the constantly changing consumer needs.
Over 32% of Southeast Asian buyers switched between eCommerce platforms to get speedier delivery times, according to a 2021 Facebook and Bain analysis. However, the requirements and expectations of consumers are always changing, especially in the post-pandemic era.
Lalamove is stepping up in this situation to build a strong ecosystem for on-demand same-day delivery that connects thousands of merchants with millions of customers locally.
The company helps organizations manage their logistical processes effectively and seeks to increase their productivity through various in-app capabilities. Want to know more about a Lalamove business model and its overall working and revenue model, hold on. This blog will give you a quick sneak peek of everything.
Introduction to Lalamove
Chow-Shingyuk founded Lalamove, formerly known as EasyVan, in December 2013 in Hong Kong.
The app currently employs over 30,000 drivers and runs successfully in over 130 locations across the globe. This serves as motivation for people like you and me.
Lalamove has more than 15 million subscribers, and the business employs 2 million van, truck, and motorcycle drivers. Customers can anticipate deliveries from this company in less than 55 minutes.
Additionally, their routes and operator staff have been optimized for optimal profit. Outstanding Lalamove APIs can be used by businesses to connect to their platform. For example, Lalamove has lowered the time it takes to match customers with drivers to only 12 seconds with the help of call centers.
Legal Name: Lalamove EasyVan Co.Ltd.
Founders: Santit Jirawongkraisorn, Chow Shing Yuk, Gary Hui
Founded year: 2013
Headquarters: Hong Kong
Operates in 21 cities
Industry: On-demand delivery, transportation, logistics
Apps: Available in both leading stores
Lalamove right now operates in 24 markets globally, connecting approx. 7 million users, including North and Latin America. The business stated to Dallas Innovates that it hoped to accomplish its target of 1,000 drivers by the end of the year.
Growth Timeline of Lalamove
- Starting from zero, the application generates $152.4 million in income, giving Quiqup, Sendy, and other rivals a tough fight.
- The company has successfully secured $955 million in capital, $515 million of which came from the most recent round of funding. From Series E funding to Series C finance, the company gradually advanced.
- The corporation has also made moves to dominate the American market after notably dominating the Asian one.
- It currently serves roughly 21 cities in the Latin American and Asian-Pacific markets, and its next goal is to establish a presence in Central America, beginning in Texas.
How Does Lalamove App Works?
On-demand same-day delivery services are available from Lalamove. This app-based courier delivery service provider offers a one-stop shop for expanding your business from individual consumer goods deliveries to large-scale enterprise deliveries.
Lalamove provides heavy and bulky package delivery for everything from furniture and wholesale goods to hardware, electrical supplies, and medical equipment. Additionally, you can use this application to deliver parcels containing food, drinks, flowers, and other items like urgent paperwork.
Here are the four steps Lalamove business model follows,
- Browsing: The goal of this step is to generate demand. Installing the Lalamove app on a smartphone allows users to request parcel delivery services.
- Payment: The delivery process will start after paying the delivery fees at lalamove.com. Multiple payment options are available to users to settle payments online.
- Matching: When a delivery is started after payment, a GPS-assisted message regarding picking up and delivering packages is delivered to a nearby courier agency or driver. Within a relatively short period, he will pick up the package and deliver it to the stated address.
- Tracking: With the use of apps, users may effectively follow the delivery process. In the event of a delay, the administrator or user may message one another. Admin may also communicate with the courier agency or driver. The app allows users to rank and review services after a successful delivery.
Lalamove Business Model: Dig into Detail
Both a fee-based and a commission-based business model underpins Lalamove. A Lalamove business model makes it possible for clients to order their package’s delivery without considering its shape or size. In addition to actively expanding in the B2B sector, it not only targets the B2C market.
The key targets for the B2B segment for Lalamove include businesses involved in sectors like the retail market, heavy construction, e-commerce, food, and beverages.
Regardless of the consumers’ characteristics, whether they are individuals or SMEs, Lalamove can assist them in moving their products throughout the market for a fair price. Even if the consumers require several drop-offs, Lalamove is unconcerned about it.
However, even hugely powerful logistical networks cannot execute it as deftly as Lalamove.
Lalamove’s Pay-As-You-Grow Model
It can be challenging to commit to a long-term plan during this time, such as recruiting new full-time employees or getting a new car. The pay-as-you-grow logistics strategy used by Lalamove can give business owners the flexibility they require at every level of the company’s development.
With flexible capacity pricing, it makes its combined fleet of 30,000 motorbikes, automobiles, vans, and trucks available to new firms. As a result, business owners can select the kind of vehicle that best fits their delivery requirements and price range.
Lalamove enables businesses to investigate an on-demand logistic solution for their errands, projects, events, and daily operations without engaging a full-time crew or purchasing a new vehicle. Additionally, this solution enables both new and current enterprises to expand or reduce their operations to meet market demand.
Revenue Model of Lalamove: How Does It Make Money?
Suppose you are considering starting a business similar to Lalamove. In that case, you must comprehend its business and revenue model because it is the most important component in determining whether or not the venture will succeed. Any business model’s foundation is its revenue model.
Principal sources of income for lalamove.com
Commission fee: Lalamove.com levies a little delivery fee in exchange for its delivery services. The number of packages and the vehicle needed determines the delivery cost. Different fees apply for delivery by truck, pace, or bike. The delivery agent receives most of the delivery fees, with the remaining portion going toward Lalamove’s earnings.
Convenience fee: Each order on Lalamove.com is subject to a convenience fee. People cheerfully pay for this as well because using lalamove.com to deliver is more convenient than using their own time and fuel.
Lalamove wants to become Southeast Asia’s go-to source for all logistics-related needs. As a result, the organization offers a variety of delivery vehicles, including lorries and motorbikes.
This enables Lalamove to help with all kinds of requests and to offer the personnel and vehicles needed to carry goods of all sizes. For instance, if a company has to transport a little package, simply a car is needed; however, if they need to transfer huge items like furniture or appliances, Lalamove can offer a large lorry.
For customers who need it, Lalamove also offers cold-chain delivery. This end-to-end delivery procedure maintains a package’s constant temperature.
Wrapping Things Up
Asia’s e-commerce companies are about to seize a huge opportunity. Analysts predict double-digit industry growth and a rise in millennial internet shopping for various purposes.
No matter their size, location, or time of day, things can be delivered in a digitally connected city by simply tapping a mobile phone screen. Lalamove, a platform allowing quick and seamless on-demand delivery solutions across Hong Kong and the globe, is at the forefront of this business strategy.
In the world of on-demand business, competition is escalating quickly. So it’s time to enter the market if you’re one of the businesses looking to break into it.