Singapore-based Ezyhaul, a logistics technology startup which also maintains business operations in Malaysia has closed a S$1.2 million ($836,120) seed investment from a group of undisclosed players in the logistics industry.
It provides shippers with real-time tracking of the movement of trucks and ensures provenance in the form of photos of the cargo, proof of delivery, and digital invoices. Through the use of an Uber-like platform, it connects shippers with transportation companies and make bookings for domestic and cross-border transportation services. For transportation companies using the platform, the benefit is maximising the use of their vehicle fleet, reducing the occurrence of empty backhauls.
To date, Ezyhaul maintains a fleet of 500 trucks on its platform and has more than 45 active shippers. This roster includes DB Schenker and Ninja Van.
Proceeds from the investment will fuel product development, growth within Ezyhaul’s launch market Malaysia, and allow expansion to other key markets in Southeast Asia such as Indonesia and Thailand in H1 2017.
The investment comes at a time when logistics providers are expanding their Southeast Asia road freight networks, following robust China-ASEAN trade growth in a market worth $472 billion as of 2015.
This comes as intra-Asia road infrastructure and networks are improving, with 3PL (third-party logistics) companies keen to capitalise on this growth potential. Asian markets are expected to account for nearly 60 per cent of world surface transport freight – particularly China and India – by 2050.
Meanwhile, Indonesia and Thailand, which Ezyhaul has identified as destinations for business expansion, are likely to see robust development in their logistics sectors in the 2017-2020 period. This comes at a time when manufacturing is migrating out of China into these countries, driving growth in associated sectors like logistics.
The Indonesian logistics industry is forecast to grow 15.4 per cent in 2020, according to a report from research consultancy Frost & Sullivan. Given logistics trends in Indonesia, as well as its e-commerce boom and infrastructure expansion, existing players will have to alter their business models while startup ventures like Ezyhaul will be able to move in a more agile manner while riding this growth wave.
Meanwhile, the Thai logistics terrain is set for a significant boost, with Bangkok intent on further developing logistics and transport infrastructure. According to research by Thailand’s Transport Ministry, Thailand’s overall logistics costs equate to about 14 per cent of gross domestic product (GDP); transportation costs account for 7 per cent, inventory/warehousing costs for 6 per cent and management costs for 1 per cent.
By comparison, Malaysia and Singapore have overall logistics cost of less than 10 per cent of their GDP. Thailand’s logistics value is estimated at $85.9 billion as at 2016 by Frost & Sullivan, a 7.5 per cent increase from 2015.
Gillon, who serves as CEO, said, “Since our launch we see 80% month-over- month volume growth supported by an experienced team located in offices in Kuala Lumpur, Penang and Johor Bahru.”