Operating in Brazil since June 2019, logistics startup Lalamove is increasing efforts in the country to reach more cities, as well as to extend its offer to big enterprises and consumers, fostering competition against Latin American unicorns Loggi and Rappi. The exclusive information is from the media outlet Neofeed.
A unicorn since early 2019, the Hong Kong based platform reached the status after raising a $300 million Series D round led by funds Sequoia Capital China and Hillhouse Capital. With more than $460 million raised, the startup sped it up its operations to 180 Asian cities.
In Brazil, the first market outside Asia to host Lalamove’s operations six months ago, the startup has, to the date, focused on SMB and reached a base of more than 5,000 couriers, who already account for a daily volume of over 500 orders, ordered by a portfolio of more than 500 active customers. But now, it intends to go further and reach large companies, by investing in features such as delivery scheduling, real-time cargo tracking, and monthly control reports.
To face competition against Loggi, which also targets the B2B market, the startup bets on diversification of its service: besides motorcycle couriers, the company works with van drivers and smaller trucks. About 30% of the current fleet consists of vehicles of four wheels. “I believe there is room for more players in this market,” said Philippe Rambaud, Business Expansion Manager for Latin America, to Neofeed. “Loggi is very focused on two wheels. We are going beyond that.”
As for other Latin American markets, the startup also opened an office in Mexico, recently in December, and intends to start operating in Colombia, Peru and Chile between the end of 2020 and the beginning of 2021. During this period, the company’s focus remains in Brazil, as Lalamove is planning to open offices in more cities and regions besides São Paulo and Rio de Janeiro, such as Belo Horizonte, Curitiba, and Fortaleza. The forecast is also to double the current team, of about 50 employees, by the end of 2020. D2C operations are also on the horizon: while currently, this niche accounts for about 15% of deliveries made by the platform, by the end of the year, the goal is to reach a 30% share, strengthening competition against the super app Rappi.
“We are different from other startups. We don’t get millions to spend. Thus, before diversifying, we had to choose an initial focus to go forward in Brazil,” the executive pointed out. “But we have enough money to grow sustainably in the country. And as we show results, we are attracting more resources from the parent company.”