Vietnamese delivery firm continues buying spree
Local delivery firm Tin Toc JSC has recently acquired SGDS Logistics and Investment Corporation, marking its third acquisition to scale up business in Vietnam.
Local delivery firm Tin Toc JSC made its third acquisition since 2017
SGDS Logistics and Investment Corporation provides a fast, reliable, and professional tailored delivery service for e-commerce firms. The firm has been operating in Ho Chi Minh City for seven years with the online portal Tochanh.vn.
This is the third acquisition by Tin Toc in the past three years. It acquired two delivery firms namely ANZShip and Dingdong Delivery in 2017 and 2019, respectively. As of present, Tin Toc has a processing capability of 9,000 orders per day, serving around 2,000 companies.
Founded in 2014, Tin Toc provides same-day and cash on delivery services. It is different from instant delivery like Grab Express and AhaMove, which delivers orders within four hours at about 20 per cent higher charge.
Over the past four years, Tin Toc has been focusing on serving its key market Ho Chi Minh City. According to Vietnam E-business Index 2019 Report by Vietnam E-Commerce Association (VECOM), Ho Chi Minh City is the city with the highest e-commerce business activity (86.8 points), followed by Hanoi (84.3 points).
Nguyen Thi Tuyet Nhung, co-founder of Tin Toc, said that the company will ramp up investment in the southern provinces of Binh Duong and Dong Nai in the coming time. The two provinces rank fifth and seventh in the Vietnam E-Business Index by VECOM.
She noted that most online businesses lack solutions to manage inventories and human resources. The company aims to become a one-stop-service platform in Vietnam. In addition to providing delivery services, Tin Toc also tied up with partners to provide solutions for online businesses like order and storage management.
The Vietnam E-Commerce White Paper 2019, estimated the scale of the Vietnamese retail e-commerce market (including goods and services) in 2018 at $8.06 billion, up 30 per cent compared to 2017. VIR
Delivery units operating under the franchise mode have been expanding thanks to the strong development of e-commerce.
The logistics sector is forecast to continue growing strongly this year, with expansion in both retail and e-commerce channels.