Lalamove expands to Penang and Johor

by LYDIA NATHAN / pic by BLOOMBERG

ON-DEMAND technology-based company Lalamove Malaysia has expanded its services to Johor Baru and Penang on a growing need for deliveries in the recent months, particularly from small and medium enterprises (SMEs).

Lalamove MD Jane Teh said Johor and Penang currently have the highest distribution of SMEs after Selangor and Kuala Lumpur (KL), which have made these two states fertile grounds to optimise the logistics ecosystem of local businesses with Lalamove’s delivery services.

According to Teh, the platform can fulfil about 500,000 delivery orders monthly in the Klang Valley and it is confident it can duplicate the results for these two states as well.

“Society at large has embraced the stay-at-home mindset and physical-distancing measures since the onset of Movement Control Order in March 2020. This rapid shift in lifestyle fuels changing consumer behaviour that puts more value in delivery services. SMEs that are in tune with this trend have better odds at survival and profitability despite the challenges due to the pandemic,” she said.

“Lalamove will commence its services in Johor and Penang by offering car and motorcycle deliveries before launching its van, truck and lorry deliveries near the end of the second quarter to enable same-day interstate delivery for the local SMEs in these two states,” she said.

The expansion was in line with Lalamove’s vision of bringing its services of affordable and faster deliveries to people located in the northern and southern regions of Peninsular Malaysia.

Lalamove driver centres have been established in Bayan Lepas, Penang and Permas Jaya, Johor, as the base of Lalamove’s operations.

Meanwhile, Teh also said Lalamove’s pay-per-use scheme, as opposed to a fixed contract that is prevalent with traditional logistics companies, is often cited as a key factor behind Lalamove’s strength in servicing SMEs.

“We are also looking forward to offering full-time and part-time income opportunities for vehicle owners in Johor and Penang. This expansion is a form of our contribution in strengthening the country’s gig economy and its workers,” she added.