You probably read some of my previous articles regarding the Small and Medium Enterprises (SMEs). As we already know, (SMEs) are said to be the backbone of every country’s economic growth. SMEs play a vital role in developing countries such as the Philippines. SMESs are present throughout our country, and in order for entrepreneurs to stay in the game and even make it big in the business, they must surpass challenges which include smart business planning framework for the management of material, service, information and capital flows. It includes the increasingly complex information, communication and control systems required in today’s business environment; or in one word-Logistics.
It is said that our country shares the same dilemma of having a high logistics costs with other Asian countries such as The Emerald of the Equator (Indonesia) and the Land of Smiles (Thailand).
The said countries already addressed this concern, though, with the use of Deliveree; a Startup logistics provider giving businesses and even individual consumers a cheaper and more efficient alternative for their on-demand logistics needs saving them a valuable amount of resources spent on capital and operational expenditures.
Deliveree has finally reached The Pearl of the Orient Seas (Philippines) as Transportify. Launched in July, it now has 45 people manning its Manila office. So far, it has more than 2,000 registered accounts in just a few weeks.
With barely three months’ worth of operations in the country, Transportify already has a pool of 850 driver-partners in Metro Manila. Over time, it hopes to expand its fleet for ground logistics. At present, its fleet includes Sedans, Hatchbacks, MPVs for Economy, MPVs for Large Load and L300s but this will be expanded in the coming months to include more vehicle options such as motorcycles, pickup trucks, and closed vans.
“Through Transportify, we hope to address a pain point that the Philippines share with Indonesia and Thailand — high logistics costs. From our studies, we found out that logistics account for about 18 percent of operating costs of companies here. With Transportify, we hope to provide a more cost-effective alternative to businesses,” said Tom Kim, International CEO of Deliveree.
Helping small and medium enterprises (SMEs) lower their operating costs in the area of logistics is Transportify’s main objective. As a value proposition, Transportify customers need only pay for the distance covered by the delivery and extra services required.
Economy vehicles start at P250 for the first 3km and P20 for every km thereafter. L300s start at P600 for the first 3km and P30 for every km thereafter. Plus, this is the only app that offers Extra Services such as Special Help by Driver and Extra Helpers.
“About 99 percent of businesses in the Philippines are SMEs and this is where Transportify’s value comes in. SMEs have very low margins, and by helping lower the logistics costs, we help these small businesses thrive in a very competitive environment,” added Kim.
Unlike traditional couriers, Transportify’s mobile and web app lets you book a driver for same-day delivery requirements. It also accepts pre-scheduled bookings up to two weeks in advance. It also has a live tracking feature so customers can pinpoint the precise location of their driver and the estimated time of arrival at any stage during the delivery.
The company, just like other transportation apps present in the market today does not own vehicles or physical assets, but an app that connects customers to drivers. It charges drivers a commission of 15% only.
“Since we don’t have to spend for maintenance of these vehicles and salaries of the drivers, we have relatively lower overhead costs. This allows us to provide our customers a service that is cost-efficient and competitive compared to what is already available in the market,” said Kim.
Transportify Philippines is powered by Deliveree which was founded in 2014 by Inspire Ventures and Ardent Capital – both well-established venture builders in Southeast Asia. Backed with $2-million seed funding and from its principal shareholders, Transportify continues to expand the business by continuously providing lower logistics costs to SMEs and significantly growing its area of service coverage in its current markets.
Download Transportify’s apps on Google Play or Appstore
Visit Transportify’s website:
Karina is not your ordinary supermom. She juggles her time bonding with her three amazing kids while being in the loop on the latest happenings in the tech and lifestyle scene. Follow me on Instagram (@digitalfilipina) regularly visit www.digitalfilipina.com for daily dose of updates not just for moms but for everyone!