AIRASIA’s logistics business Teleport has invested in Kargo Technologies (Kargo), Indonesia’s largest trucking marketplace in its quest to become a key player in delivery in the Southeast Asia region through convertible notes.
This acquisition was funded through Teleport’s internally-generated sources.
Into the bargain, the investment links Kargo’s trucking network to Teleport’s infrastructure, broadening Teleport’s mid-mile capabilities beyond air freight.
In accordance with Teleport’s objective to move things better than anyone else in Southeast Asia, this partnership with Kargo opens up the possibility of combining air connectivity with trucking capabilities on the ground, using strong technology and enhancing the network.
“When we were first connected to Kargo co-founder and CEO Tiger Fang in 2021, we almost instantly agreed that both a commercial partnership and potential investment by Teleport would make sense for both parties,” Teleport CEO Pete Chareonwongsak said.
“It has always been our goal to deliver with speed at low cost and to serve the underserved, which is why we acknowledge that the fastest-growing cities of the future will be smaller ‘middleweight’ cities, rather than larger primary cities.
“To support this, we need to look beyond the AirAsia network and air transportation to connect these emerging cities.
“With our strengths combined through air and land, this partnership with Kargo sets us up to move things across Southeast Asia better than anybody else.”
Furthermore, given its archipelagic geology and topography, the most practical approach to connect these cities in Indonesia is to offer a “middle mile” service connecting both land and air.
Moreover, Kargo will benefit from Teleport’s regional presence, broad network and rich data as they rapidly extend their footprint across the area. This partnership will also aid Teleport’s commitment to making 24-hour delivery feasible through the archipelago’s multi-modal routes.
According to Fang, the strategic partnership with Teleport will help them become multi-modal, expanding in the value chain horizontally.
“We expect the partnership to mutually benefit both parties by growing each other’s presence in Southeast Asia in 2022 as we look to solve the evergreen logistics issue in the region,” he added.
Kargo has a network of over 75,000 trucks and is digitalising logistics for shippers and carriers.
Kargo will utilise the transaction funds to support the company’s future growth in end-to-end freight coverage in the B2B arena, as well as to expand to other cities in the area in collaboration with Teleport. – Jan 27, 2022
