E-commerce platform Lazada Indonesia is partnering with mobile transportation service Go-Jek to improve its delivery services and provide more options for its customers
-commerce platform Lazada Indonesia is partnering with mobile transportation service Go-Jek to improve its delivery services and provide more options for its customers.
The new partnership will be marked by a small promotional sale to test the capacities of both parties. Between April 14 and 17, there will be a special flash sale held by Lazada on four items that are among the most favored items in the local marketplace, namely power banks, lunch boxes, action cameras and flashdisks.
Go-Jek will deliver the goods, and the deliveries will only take place between the hours of 9 a.m. and 1 p.m. in and around the Greater Jakarta area.
“From this promotion, we are not really expecting a high uplift in sales, because the aim of this partnership is to emphasize our delivery capabilities, giving more options to our customers,” Lazada Indonesia co-CEO Florian Holm told reporters on Tuesday.
In terms of delivery, Lazada works on a different algorithm than Go-Jek, primarily measuring its delivery times in days, rather than the faster paced Go-Jek, which measures delivery times in minutes. The average time for Lazada to make a particular delivery was 8.2 days in 2014, but the service has now improved to an average of 3.3 days.
Florian also said that within the next few years, he hoped Lazada would enhance its delivery experience to a point where customers could choose for themselves the time of the delivery.
Aside from Go-Jek, Lazada has partnered with several logistics companies to boost its delivery service quality such as JNE, Tiki, RPX and Pandu Logistics. It has also established its own logistics service through Lazada Express.
Florian added that through the partnership with Go-Jek, Lazada would test and analyze its delivery market, as the needs of customers varied for different delivery times and services, with some requiring goods to be delivered at a more relaxed pace than others.
For Go-Jek, the partnership with Lazada will be a chance for the company to further tap into the country’s rapidly growing e-commerce market, Go-Jek’s chief marketing officer Piotr Jakubowski said.
Both companies have been successful in penetrating into the Indonesian market after adopting mobile apps as their primary source of customer service. Piotr said that Go-Jek’s success can be attributed to its shift from call centers to mobile apps back in January 2015, trimming an average 20 minute delivery time to around 40 seconds in some cases.
For Lazada Indonesia, mobile app transactions account for over 60 percent of the revenue. Its app has been downloaded 20 million times across the six Southeast Asian countries where it operates.
Meanwhile, Florian said that Lazada wanted to focus its growth in cities outside of Jakarta, as large regional cities such as Bandung, Surabaya and Yogyakarta hold considerable growth potential. The target for 2016 is to provide free shipping costs to around 20 cities in Indonesia.
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