Kerry Express, a domestic parcel express delivery service and part of Hong Kong-based Kerry Holdings Group, is earmarking 1.8 billion baht to expand its delivery network capacity to grow e-commerce and cross-border trade.
The company will expand its retail service at Bangkok Mass Transit System (BTS) stations after VGI Global Media acquired a 23% stake with a 5.9-billion-baht investment in Kerry Express in April.
"The investment this year will mainly focus on infrastructure for parcel delivery service, enabling Kerry to deliver 1 million parcels a day by the end of this year, up from 750,000," said Alex Ng, executive director of Kerry Express Thailand, the company's headquarters for Southeast Asia.
The infrastructure covers more rental motorbikes and trucks, as well as an increase in staff, parcel sorting and distribution, particularly for its second phase expansion in the Bang Na area.
In 2017, the company's regional delivery network included 16,000 vehicles, 3,000 parcel shops and service points and 900 distribution centres. The company generates US$150 million (4.78 billion baht) a month from its cash-on-delivery service in Southeast Asia.
"Thailand is Kerry Express's headquarter of operations and research development and has the biggest volume of transactions," said Mr Ng.
In Thailand, Kerry has secured an 80% market share (excluding Thailand Post) in parcel delivery.
The company is focusing on an online-to-offline strategy, offering retail services and drop-off points for merchants and customers.
"Kerry Express is partnering with all major e-marketplaces for business-to-consumer and consumer-to-consumer services, especially social commerce," he said.
By the third quarter, customers who shop on Lazada can self-collect at nearby Kerry service shops, in addition to home delivery.
Thailand's e-commerce market is still in its infancy and there is room to grow at a double-digit clip over the next two years.
Parcel delivery service is expected to grow on par with e-commerce, said Mr Ng.
But Kerry Express will boast higher growth than the overall market, he said.
In Thailand, there are 11,000 Kerry vehicles with over 2,500 parcel shops and service points. Kerry offers same day-delivery in Bangkok and next day delivery service covering 99.9% of the country.
Kerry is also the largest payment delivery company in Thailand, supporting e-commerce and home shopping.
As a Rabbit LinePay shareholder, Kerry Express is the biggest LinePay delivery platform, allowing users to pay by QR code.
Kerry plans to announce a partnership with the skytrain after the VGI acquisition.
Kerry will have the first right to set up shops, kiosks, counters and any other service points at all BTS stations for parcel collection as well as pick-up.
"We will leverage the Skytrain network by using walking couriers, in addition to motorbikes, in order to offer faster delivery service," he said.