Pickupp Expands Malaysian Footprint With First Regional Hub in Penang

Pickupp Malaysia, the on-demand delivery and tech startup redefining logistics, today announced its expansion beyond the Klang Valley through its first regional hub in Penang. Pickupp will service the northern region with one warehouse, with plans to expand its warehouse footprint in the coming years to fulfill the demand for last-mile delivery to support the soaring growth of e-commerce and logistics. This announcement follows its parent company, Pickupp Limited’s, recent USD15 million Series A and Series A+ financing.

This expansion is in line with Pickupp Malaysia’s vision of bringing affordable and efficient logistics services to businesses and consumers beyond the Klang Valley. Through this northern hub, Pickupp continues to work closely with its strategic partners, including 3PLs, to uplift Malaysia’s delivery ecosystem that is experiencing growing demand due to the growth and maturity of e-commerce in the nation and across the world. Currently, Pickupp is partnering with customers ranging from multinational logistics companies like DHL eCommerce and Aramex to leading e-commerce brands like Lazada, FashionValet, and more in Penang.

“This latest expansion of our last-mile delivery network puts our customers even closer to their end-customers in some of the most densely populated areas in Penang, where capacity constraints can be a daily challenge. Moreover, by increasing our footprint into the northern territory, we improve our customers’ speed-to-market, which is crucial in today’s highly competitive environment and vital to our customers’ short- and long-term growth strategies,” said Navin Kandapper, Country Manager of Pickupp Malaysia.

Through the expansion of Pickupp’s local operation in Penang, it is expected to create job opportunities for Penangites and offer localized services for customers in and around the region. The company is also reaching underserved local communities through its Delivery Agent Acquisition Plan, which to date has benefitted 38,497 individuals.

“Logistics is one of the most challenging parts of the e-commerce puzzle, especially for smaller merchants. Pickupp helps them compete in the on-demand economy with flexible, customizable delivery services with an average saving of approximately 30% of conventional cost. This is made possible by proprietary software and batching technology that improves operational workflow for route optimization and warehouse management,” said Navin Kandapper.

In the Klang Valley, Pickupp has fulfilled approximately fourfold of the weekly same-day deliveries since the onset of its business operation in Malaysia as compared to the pre-pandemic era. With the expansion to Penang, Pickupp aims to meet the demands of local businesses and support the development of the state’s logistics landscape. The expansion to Penang is a form of the company’s commitment to further strengthening offerings for Malaysia’s workforce by offering flexible earning opportunities.

To further assist SMEs, Pickupp Malaysia has rolled out the SME Referral and Rebate Program that includes pro-bono logistics consultations to help SMEs prioritize delivery and further enhance their business offerings and assist in business planning. Additionally, Pickupp Malaysia plans to introduce food delivery services in Penang to support the vibrant F&B scene and expand its cross-border offerings for clients and partners through this first regional hub, supporting its expansion across the APAC region and beyond.

Pickupp’s user base has grown by 250% since the pandemic outbreak in March 2020, with over 100,000 delivery agents onboard across all regions. Pickupp Malaysia has seen a user base growth of 198%, creating earning opportunities for 38,000 independent delivery agents. As a result, Pickupp has become the last mile for MNCs and the first step for startups and SMEs. Pickupp Malaysia has also partnered with logistics giants to support its delivery processes, especially during periods of peak demand.

Source: Press Release

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