Deliveree Thailand, a Bangkok-based on-demand delivery service app, expects to break even this year -- three years after its inception -- thanks to the growing e-commerce retail market, which has led to greater demand for fast delivery service.
"Our Bangkok operation is on the right track to break even by year-end, helped by our cost efficiency and business development strategies," said country director Chanisa Rueangkirianya.
Deliveree is also on the verge of raising series A funding, also expected to be completed by the end of this year.
The company has two Bangkok-based venture capital firms as its partners: Inspire Ventures and Ardent Capital.
Ms Chanisa said the company by June will provide one-day car rental service in addition to on-demand delivery services in Bangkok. It also plans to provide delivery service across major second-tier provinces.
Deliveree provides 2-3 hours delivery service in Bangkok and suburban areas using various vehicles ranging from motorcycles, cars, pickup trucks and trucks.
The company earns a commission from its drivers.
Deliveree also has a business presence in the capitals of Indonesia and Philippines.
"We are looking to further expand our business into other major cities in Southeast Asia," she said.
In 2016, she said Deliveree Thailand saw almost a 500% increase in the amount of transactions, helped by its market expansion efforts into the corporate customer segment.
The Deliveree app has been downloaded more than 200,000 times, while the company boasts 9,000 drivers in its transport network.
Ms Chanisa said on-demand delivery service has seen promising growth, especially in major cities in Southeast Asia, where people seek to trim down travel time caused by traffic congestion.
Based on the Word Bank's Logistics Performance Index report, in recent years the cost of logistics to GDP in Thailand dropped from 17-19% to 14% in 2016.
The cost of logistics to GDP in developed countries such as the US, Japan and certain countries in Europe is below 10%.
"Thailand still has room for improvement in terms of reducing logistics costs and enhancing the logistics ecosystem," Ms Chanisa said.