Thailand Post offers app with no driver fees
New services sold on the platform soon
Thailand Post, through subsidiary THP Distribution, plans to launch its own parcel delivery app allowing drivers to sign up for the platform to deliver packages with no driver-side fees.
The state-owned courier also plans to allow convenience store chains to rent space at its 5,000 total locations as a new revenue stream.
"Pool Space" is a delivery platform expected to begin service next year and will allow drivers to sign up for the platform and deliver using their personal vehicles without charging a fee to drivers for the first 3-5 years. The initiative is a way to provide jobs to Thais and modernise its delivery system.
Most delivery apps take a 15% cut from drivers.
THP Distribution would also provide e-wallet services and sell insurance to platform users.
"We do not target a profit on Pool Space, but it will give Thais work opportunities in the new economy," said Thailand Post chief executive Korkij Danchaivichit.
Through the Pool Space platform, vehicle owners can match and choose parcel delivery options, jobs and traffic routes depending on their vehicle size. Customers will pay a delivery fee directly to drivers.
"Following the launch, Pool Space will provide alternative payment transactions through our e-wallet and take a 4% fee," he said.
Mr Korkij said the company could create more value-added services on the Pool Space platform by selling car insurance and parcel delivery activities.
He said Thailand Post plans to set up another subsidiary for related businesses next year.
The first service will allow Thailand Post to rent space to retail businesses, particularly convenience stores, at nearly 5,000 locations. The company is in talks with key players such as CP All, which operates 7-Eleven, and Central Group, which operates Family Mart, as well as grocery and general merchandising retailer Big C.
Last month the post office signed a memorandum of understanding with Krungthai Bank to develop a central digital platform to help Thai farmers nationwide directly meet buyers in the market, allowing farmers to get better prices for their crops, bypassing middlemen.
Thailand Post can then deliver some of the farmers' products directly to consumers.
"Parcel delivery competition is not just red ocean, but extreme red," Mr Korkij said.
Thailand Post is a top three parcel delivery business in the country.
It is a state mail delivery department with origins under the Postal Act 1934. Through the Act, Thailand Post (formerly known as Department of Post and Telegraph) is an authorised agency that operates mail, postcard and money orders.
Mr Korkij said parcel delivery generates more than 50% of total revenue to Thailand Post per year and the company last year booked 22 billion baht in total revenue.
For the first half of 2020, total revenue was 12 billion baht with profit of more than 1 billion.
Thailand Post has around 40,000 staff and 1,700 self-operated post offices with over 3,300 postal affiliate stations nationwide.