7-Eleven Malaysia acquires 46% stake in Dego Ride operator for $1.8m

Photo from 7-Eleven Malaysia's Facebook page.

7-Eleven Malaysia Holdings (SEM) is acquiring a 46.45 per cent stake in local delivery services provider Myinteractivelab Sdn Bhd (MSB) for 7.5 million ringgit ($1.8 million).

MSB operates bike-hailing firm Dego Ride, which launched its services in the country on Wednesday, January 1 with over 700 riders and operations spanning Putrajaya to Shah Alamin.

SEM, the country’s largest standalone convenience store chain, said in a stock exchange disclosure that it has entered into an agreement to acquire 490,030 new ordinary shares of MSB from its founder Nabil bin Fiesal Bamadhaj for about 15.33 ringgit apiece.

Incorporated in May 2009, MSB provides delivery services, web development, design, and consultation services. It operates three mobile applications, namely Dego App, Dego Partners, and Dego Orders. The firm is currently in the process of securing the licence and approval to run electronic hailing motorcycle taxi services.

“The subscription represents an opportunity for the SEM Group to acquire a substantial equity stake in MSB, which will be undertaking the [e-hailing bike services] and to provide convenient delivery services for its 7-11 outlets,” SEM said in its disclosure.

Dego Ride had 1,500 riders and more than 60,000 users in three months before it was banned by the previous government in 2017, according to reports. It now plans to expand its driver network to over 4,000 riders.

“We currently provide our Dego Ride service across the Greater Klang Valley (covering all major towns in Selangor and Kuala Lumpur) and are rapidly expanding to other high potential areas in Malaysia,” the company says on its website.

Its motorcycle taxis charge 3 ringgit for the first 3 kilometres, with 1 ringgit for every subsequent kilometre. Currently, the firm only accepts cash payments.

Malaysia’s government had in August 2019 given its in-principle approval for Indonesian ride-hailing major Gojek and Dego Ride to offer motorcycle taxi services in the country,

The government has also announced that it would embark on a proof of concept trial for e-hailing bike services in the Klang Valley for six months starting this month.

The programme will provide the government with essential data to evaluate the demand for such services while working on drafting the legislation to govern the said service and will consider expanding it to other areas if there is demand.

“The government’s initiative in undertaking the program is a positive step and augurs well with the proposed subscription as Dego Ride is the only company in Malaysia, besides Singapore’s GrabBike and Indonesia’s Gojek, which has indicated its interest in the program,” 7-Eleven Malaysia said.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.