Best logistics, an Alibaba backed logistics company, will expand its business across Southeast Asia, media reports said. As a part of the expansion plan, the company is rolling out express delivery services in Singapore, Cambodia and Malaysia.
Johnny Chou Shaoning, founder and chief executive of Best, told the media, “The outbreak of Covid-19 accelerated and amplified consumers’ reliance on ecommerce and created even larger potential opportunities in the region.”
The expansion plan also includes the establishment of a dozen sorting centres and nearly 400 logistic stations across the Southeast Asia region within three years. BEST has also received support from Foxconn and is listed under the New York Stock Exchange.
The move also points to the company’s aim to grow its franchise business model. Since its foray into Thailand and Vietnam, it has established 15 sorting centres along with over 740 logistics stations across both countries. The logistics stations can handle 5 lakh parcels each day.
According to the first quarter results, Best has incurred a net loss of $106 million but its international revenue grew by 182.8 percent. The reason behind the high revenue is attributed to a good growth of parcel volumes in Vietnam and Thailand.
After China, Southeast Asia is booming in the logistics sector. Many ecommerce and logistics companies are anticipated to target the region to expand their footprints in the coming years.