Postal service to lose market if it doesn't innovate

April 4, 2019 | 09:02 am GMT+7

The investments by technology firms such as Grab, GoViet and Ahamove in the e-commerce delivery market have put pressure on traditional postal service providers.

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 Automatic post offices, self-service post offices, and paperless post offices have replaced the traditional model.

Senders install the apps of the service providers, and register their accounts with email, mobile phones and bank accounts. When they send goods, they order on the app, choose the kinds of services and calculate freight fees. Delivery service providers send staff to meet senders and take the goods away.

Senders can also order and then come to the nearest post office, where they print bills and submit via an automatic system at the post office. 

The model of sending goods via apps is considered a revolution in the post snf delivery industry as it helps save time and costs on bill and document printing. 

As for COD (cash on delivery) bills, money is automatically transmitted to the service providers’ accounts.

The sharing economy model in the fast delivery market has also helped changed the look of the industry. Ahamove turned up in the market in 2015 as the first instant delivery app.

The app now has 60,000 partners-drivers and fulfills 50,000-70,000 orders each day in Hanoi and HCM City.

Truong Bomi, CEO of Ahamove, said the company has become the deliveryman for Lazada and Sendo. The cooperation between Ahamove and the two e-commerce trading floors permits delivery of goods within a short time in inner cities of Hanoi and HCMC, an advantage that other companies don’t have.

The presence of the sharing economy model in e-commerce delivery has increased as Grab, GoViet and Delivery Now have poured big money into the field.

The presence of technology unicorns, with the capability of delivering goods within tens of minutes is a big threat not only to traditional postal companies, but also providers of delivery services via apps such as Giaohangnhanh (Fast Delivery) and Giaohangtietkiem (Safe Delivery).

To become more competitive, traditional postal companies such as ViettelPost and NetcoPost have also spent big money on technology to improve their service quality.

Pham Anh Tuan from VietnamPost said the capability of accessing every individual customer helps traditional postal businesses provide services at the final stage (delivery) of e-commerce process. 

In related news, Woowa Brothers, a South Korean unicorn has joined Vietnam’s food delivery market after spending $2.6 billion to take over Vietnammm.com.
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