Logistics delivery app offers 40% savings

The business of delivery mobile application has gone to a whole new level from transporting people to the movement of goods, merchandize and belongings around the city at 40 percent cheaper than traditional delivery service.

Called Transportify in the Philippines, this new logistics delivery mobile app by Deliveree is the largest of its kind in Southeast Asia.

Transportify is a mobile and web app powered marketplace focusing on delivery logistics.

Focused on Southeast Asia, the service was first launched in Bangkok in early 2015. It expanded to Jakarta later that year, and very recently opened in Manila.

Today, altogether Transportify has 132 staff, 8,800 drivers, and 100,000 customers spread across Southeast Asia.

Reporting on Manila, Transportify's Co-Founder and International CEO Tom Kim stated that activated drivers exceeded 900 in Metro Manila as of October.

“Before we launch a new market, we conduct market studies to determine local service levels and how closely they meet customer needs," said Kim.

In the Philippines, he said, Deliveree saw the need for much more flexibility amongst delivery logistics providers in the way they service their customers.

"That's where Transportify enters the picture.," Kim said.

It also makes business sense to get Transportify than hiring a delivery service.

Traditionally, booking an L300 for a delivery means renting a one-way trip for the price of R2,500 to R3,000 on a fixed day rate, regardless of the distance or time used. Transportify claims their flexibility and modularity is a game changer.

According to Paulo Bengson, Transportify's head of operations, the key to Transportify's approach is allowing customers a variety of options and charging them for just what they use.

For example, its standard fare pricing is based on distance traveled so customers pay more for longer deliveries and less for shorter ones. In addition, the starting price per vehicle varies based on the vehicle's cargo capacity size. Smaller vehicles have lower starting price than the larger commercial vehicles.

Once you add it all up, Transportify claims they are saving businesses as much as 40 percent on traditional delivery logistics pricing.

"Even though we're completing hundreds of deliveries a day, demand for our services has been outpacing our supply since we launched. Although we are quickly catching up with increased recruiting and training of driver partners." said Noel Abelardo, Transportify's business program head.

It's too early to say how successful Transportify and other early pioneers of the mobile tech "Uber for logistics" model will be.

But one these mobile apps are changing public perception about how businesses and people move their things around the city, Abelardo concluded.