AirAsia’s Teleport to acquire Delivereat for RM41.5m

The acquisition will increase Teleport riders’ infrastructure and strengthen its door-to-door service

by ANIS HAZIM / Pic Source:

AIRASIA Group Bhd’s logistics arm, Teleport Commerce Malaysia Sdn Bhd, is acquiring homegrown online food delivery provider, Delivereat Sdn Bhd, for RM41.49 million to strengthen its door-todoor service under 24 hours in Malaysia.

The deal, which is expected to conclude by September, could value Teleport at RM1.27 billion with backing from prominent investors such as venture capital firm Gobi Partners.

Teleport CEO Pete Chareonwongsak said the acquisition would increase its riders’ infrastructure and productivity as a result.

“As a logistic delivery service, Teleport is interested in the riders’ infrastructure and the ability to use the riders’ productivity over a whole day for delivering food as well as e-commerce.

“The riders will be more productive throughout the day and earn more for a better way of living,” Chareonwongsak said in a virtual media round table yesterday.

He said Teleport is strongly focusing to provide more opportunities for riders to deliver more things in a day.

He said Teleport, being the only last-mile delivery provider that owns an airline, would invest in the ecosystem of delivery capabilities to efficiently pair on-demand deliveries with same-day courier arrivals, both domestically and across borders.

He added that this synergy would support local providers, provide the best value and choice to consumers and create more jobs for its delivery partners.

Delivereat’s active riders are expected to increase between 20% and 30% following the acquisition in tandem with higher productivity.

Chareonwongsak said Delivereat would help Teleport expand quicker, starting with all major cities in Malaysia, including Penang and Klang Valley, before going across Asean.

Established in 2012, Delivereat is a homegrown start-up from Penang that offers food and express delivery services on an on-demand basis from more than 4,000 merchants, comprising restaurants, wet markets, pharmacies and groceries, done by some 4,000 registered delivery partners.

Delivereat co-founders Leong Shir Mein and Tan Suan Sear will be joining the management team at Teleport and AirAsia digital as part of the terms of the agreement.

“With close to a decade of onground experience in the food and on-demand delivery space, we are excited to join forces with Teleport to spur our growth in the rest of the Asean region.

“We are proud to now be a part of another homegrown brand, one that has revolutionised its industry with unprecedented success. Our goal is to use our strong synergy with Teleport from this merger to emulate the same,” Leong and Tan said.

Gobi Partners founding partner and chairman Thomas G Tsao said the acquisition will bring the Delivereat value proposition to a larger market.

AirAsia Super App CEO Amanda Woo said the Delivereat acquisition is timely as the app recently expanded its AirAsia Food offerings to Penang.

“We are happy to welcome them into the AirAsia family and we look forward to working with Delivereat to grow and expand our merchants in AirAsia Food when we onboard Delivereat’s merchants to our platform in the months to come,” Woo said.

She said AirAsia Food plans to expand to Johor Baru, Ipoh, Kuching and more cities soon.