The faster the better
The on-demand delivery market is a booming space, and Borzo wants a piece of the action, writes Izwan Ismail
EVOLVING consumer demands fuelled by the Covid-19 pandemic have spurred businesses to reinvent the way their enterprises operate. This in turn spills over to delivery companies that are their logistics partners.
In this new-normal landscape, where delivery companies find themselves in the centre of elevated demand for faster digital logistics solutions, delivery player Borzo aims to capture a piece of the market share in the country, making on-demand delivery accessible to businesses that want next-day delivery.
Borzo may sound alien to many of us here, but it’s actually the rebranded MrSpeedy.
“The rebranding of Borzo is a global campaign that’s part of the group’s growth strategy. Before this, companies in our group were operating under different names. We think it’s the right time to streamline our operations, especially when the world is witnessing a surge in on-demand deliveries,” said chief executive officer Idriss Al Rifai.
“The global rebranding exercise will see us introduce improved features, greater opportunities for businesses and a revamp of internal processes to ensure more seamless delivery processes,” he said.
HIGH-GROWTH MARKET
According to a report by PricewaterhouseCoopers, ondemand economy will soar to US$335 billion by 2025.
In Malaysia, the delivery market is a booming space, with revenue in the online food delivery segment alone projected to reach US$336 million this year.
“Within this space, there is a need for on-demand delivery services, both from businesses and consumers. So it’s a space that is currently seeing huge growth, at the same time having a lot of potential to continue striving and thriving,” said Borzo Malaysia country manager, Lingesh Thayala.
“As of this year, we have over 50,000 active partner merchants and we look forward to growing this space by collaborating with businesses across a wide spectrum of industries and sectors.”
MEETING DEMAND
All consumers want their items to be delivered immediately after purchase.
To meet this expectation, Borzo said it had allocated an expansive fleet across Malaysia and other countries that could be mobilised to fulfil this last-mile demand by consumers.
“E-commerce players will be storing their inventories closer to the end consumer and mobilise services like ours to fulfil that demand. The on-demand delivery space will complement the trends happening across various industries.
“With the solutions we provide, we enable small businesses to compete with large e-commerce companies by offering local selections combined with great delivery time and experience,” said Idriss.
He added that consumer appetite for on-demand services is one of the factors driving the demand for delivery service.
“Thanks to the ‘always on’ and 24/7 online concept practised by society as a whole,” he said.
“Information is at our fingertips, and goods and services are no exception. That is the very factor affecting brick-and-mortar businesses with limited presence online,” said Lingesh.
“Convenience, speed and reliability are key elements that businesses seek out these days,” he added.
“Besides that, businesses’ need for value is also a factor.
As they seek to be more accessible and affordable to their customers, they will be looking to delivery partners like us for logistical support,” said Idriss.
PLANS FOR 2022
In line with global initiatives, Borza said it is streamlining operations and internal processes for the benefit of customers.
“After speaking to businesses that we serve, we see that there is a demand for reliable same-day delivery. Hence, we are planning to introduce same-day delivery at prices similar to next-day delivery service,” said Lingesh.
“We have also started working with businesses to provide two options based on their needs. One is a dedicated rider service at their location on a daily basis and second is for us to manage their current fleet so they are able to reduce the cost of management and the hassle of having a fleet in house.
“This way, they can focus on building their respective businesses and we focus on fulfilling their logistical needs. Businesses can partner with us for their on-demand delivery needs on a daily basis,” he added.
Borzo currently has about 10,000 active riders in its fleet.