AirAsia launches parcel delivery service in Malaysia with Thailand to follow

Photo: Reuters

 AirAsia launched a parcel delivery service on Tuesday with logistics unit Teleport as the Malaysian budget airline continues to pursue its “super app” strategy of offering a wide range of services.

The parcel delivery service is branded as AirAsia Express, with Teleport to serve as the last-mile delivery partner.

Teleport, which started as an aircraft belly cargo operator, has emerged as one of AirAsia’s major earning contributors even as the group’s core airline business has been battered by international border closures and restrictions on movement amid the coronavirus pandemic.

The logistics company aims to be a “modern-day DHL Express,” Teleport CEO Pete Chareonwongsak told Nikkei Asia. The company is in the midst of a Series A fundraising in which it aims to raise up to $100 million by year-end for a valuation of more than $300 million. The fundraising exercise would be its first external cash call.

Despite AirAsia’s third-quarter revenue falling by 37% year-on-year to 295.9 million ringgit ($70 million), Teleport’s sales tripled to 157.8 million ringgit for the same period.

“When we first started [in 2018], people said, ‘You are only cargo,’ and what can we do to compete with the strong core airline business, but we needed the pandemic to prove that although people couldn’t travel, businesses and products still needed to move and that’s whhave proved proven ourselves,” the CEO said.

“We would like to able to grow as a standalone company and we are working towards listing the company in three years,” he said, declining to elaborate on the choice of listing destination.

Teleport also launched its first dedicated 737-800 freighter to accelerate its goal of shifting from airfreight logistics player to a complete, multimodal operator. Stationed in Bangkok, the freighter is intended to serve key markets including Hong Kong, Shanghai, Chennai, Mumbai and Southeast Asia.

The logistics firm currently has over 5,500 customers in the Asia region.

The new AirAsia Express service, meanwhile, will begin in seven major cities in Malaysia and expand to cover all of Malaysia by year-end, AirAsia super app CEO Amanda Woo told reporters in Kuala Lumpur.

“The next expansion would be to Thailand as our acquisition of Gojek would make it easier for us to expand there,” she said. “After that, Indonesia, Singapore and the Philippines would be our aim.”

It aims to provide the “lowest parcel delivery fares,” similar to its airline business model. The service provides options for instant delivery within an hour or within 24 hours.

The article was first published on Nikkei Asia.

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.

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.