The company is committed to providing both first and last mile connectivity to everyone in the Klang Valley
By SHAZNI ONG / Pic By TMR File
DEGO Ride remains focused in launching its motorcycle taxi services in January following 7-Eleven Malaysia Holdings Bhd’s take-up of a 46% stake in the firm’s business and operations.
Dego Ride’s founder Nabil Feisal Bamadhaj said the company remains committed to providing both first and last mile connectivity to everyone in the Klang Valley and maintaining a good public transport service that can be relied on.
“Besides pioneering motorcycle taxi services, once again with the full support of the Land Transport Agency and Transport Ministry this time around, we will be expanding our delivery service offerings to extend 7-Eleven’s reach to its loyal customers,” he told The Malaysian Reserve on Sunday.
Nabil Feisal, who is also Myinteractivelab Sdn Bhd’s (MSB) CEO, noted it was not the financial aspect that attracted the firm to venture with 7-Eleven.
“It was the opportunity of partnering a leading household brand, namely 7-Eleven, that shared a similar vision and approach with Dego Ride, which was what that led us to welcome them into our company.
“Dego and me included is glad and proud to welcome 7-Eleven as a shareholder,” he said.
To recap, 7-Eleven’s wholly owned subsidiary company, 7-Eleven Malaysia Sdn Bhd (SEMSB), entered into a subscription agreement for 490,030 new shares at RM15.33 a share or a 46.45% stake of the enlarged issued share capital of MSB for RM7.51 million cash.
7-Eleven noted the subscription will be backed by internal funds and there will not be any assumption of liability by SEMSB from the subscription.
Concurrent with the subscription, SEMSB entered into a shareholders’ agreement with the other existing shareholders of MSB to regulate their relationship as shareholders, and the conduct of business and affairs of MSB.
MSB was incorporated on May 26, 2009, in Malaysia and currently has an issued share capital of RM565,000 comprising 565,000 ordinary shares.
The principal activities of MSB are the provision of delivery services, web development, design and consultation services, and is the operator, registered and beneficial owner of three mobile applications named “Dego App”, “Dego Partners” and “Dego Orders” which are available on Google Play Store, Apple App Store and Dego website.
The existing shareholders of MSB are Nabil Feisal (95.23%) and Qinetics Solutions Sdn Bhd (4.77%).
MSB is led by Nabil Feisal and operates Dego Ride, which is in the provision of delivery services in Johor.
The service was earlier banned under the previous government due to safety concerns.
MSB is currently in the process of securing the necessary licence and approval to run the electronic hailing motorcycle taxi services (e-hailing bike services) in Malaysia.
This comes after the government announced it would embark on a proof of concept trial (POC Programme) for e-hailing bike services in the Klang Valley for six months starting in January 2020.
The POC Programme is expected to provide the government with essential data to evaluate the demand for the e-hailing bike services while working on drafting the legislation to govern the said service and consider expanding it to other areas, if there is demand.
7-Eleven said the government’s initiative in undertaking the POC Programme 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 to participate in the POC.
“The e-hailing bike service, when implemented, is expected to boost the local economy by creating job opportunities for youths in the country,” it said.
7-Eleven said the subscription represents an opportunity to acquire a substantial equity stake in MSB, which will be undertaking the proposed project and providing convenience delivery services for its 7-11 outlets.
7-Eleven added that the subscription will not have any effect on the issued share capital and shareholding structure of the company and is not expected to have any material effect on the earnings and net equity funds of 7-Eleven Group for the financial year ending Dec 31, 2019.
7-Eleven closed one sen lower at RM1.42 yesterday, valuing the company at RM1.63 billion.