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Delivery services compete on speed

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E-commerce delivery services are booming in Vietnam, especially in the last mile delivery segment – from distribution centers to consumers. The players in the market are both large businesses and startups.

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Delivery services compete on speed

 

German giant DHL last July kicked off domestic delivery service in Vietnam. DHL eCommerce Vietnam’s CEO said the service is managed and supported by centers and storehouses located throughout the country. 

When using the DHL eCommerce Portal, online retailers can order COD service (cash on delivery) for certain consignments of goods. Buyers can check and return goods at delivery times with Open-Box-Delivery service. The service is believed to fit Vietnamese consumption habits.

UPS from the US has also accelerated its business. UPS Vietnam’s CEO Daryl Tay said the strong point of the delivery firm is that it has solutions that connect customers in Vietnam with other countries, allowing customers anywhere to have similar experiences. 

As for FedEx Trade Networks, after eight years of presence in Vietnam, it has set up a subsidiary to enhance services in the domestic market. The firm decided to expand the investment as it still can see big opportunities for development in Vietnam.

As foreign big players have geared up in the race, Vietnamese players have also applied solutions to improve service quality. Besides the large network with 18,000 postmen and deliverymen who reach every commune, VNPost also has solutions for online shops. Meanwhile, ViettelPost has a large network in all 713 districts in the country, with thousands of deliverymen. 

The e-commerce delivery market also accommodates thousands of freelance service providers who work through transport firms such as Grab and Uber.

In July 2017, Uber launched its delivery service called UberShip which was renamed UberDeliver in HCMC. The service is competitive with the fee of VND15,000 for the first two kilometers and VND5,000 for every subsequent kilometer. The same service fee is applied by GrabExpress. Both GrabExpress and UberDeliver only deliver goods, but they do not provide COD.

Startups and small firms are also joining the market. In 2013, the fast delivery market  had 5-6 players, while the figure now is 50.

ShipS, just after eight months of operation, has staff of 1,000 deliverymen in HCMC and 3,000 in Hanoi. The other well-known startups in the field include Giao Hang Gia Re, Giao Hang Nhanh, Ahamove, Tochanh.com, Proship.vn, Shipchung and Giaohangtietkiem.

According to Charles Brewer, CEO of DHL eCommerce, with spending on e-commerce expected to increase by 23 percent from now to 2020, online retailers need to have high-quality logistics and transport solutions to expand their business scale.

 

 

Source: VietNamNet

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