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Lalamove · Indonesia · 2018 — 2020

Lalamove+ B2B build

A B2B offering developed and launched from scratch, scaled to 30,000 orders per day at 12% net profit.

Context

The consumer marketplace needed a profitable enterprise motion with predictable demand and better economics.

Intervention

  • Defined the B2B proposition, pricing and workflow logic.
  • Built the commercial and operating engine to onboard and retain enterprise accounts.

Outcome

  • 30,000 orders per day.
  • 12% net profit.

Lala fixed-price — cost control for on-demand logistics

Lalamove+ started as a proof of concept in Greater Jakarta — the most demanding on-demand logistics market in South East Asia. The product let business users deliver any parcel anywhere across the city for a fixed, standalone price per drop, same day.

The insight was commercial rather than technical: businesses do not buy speed, they buy predictability. Fixing the price per drop turned last-mile delivery from a variable cost line into a planned one, and the routing technology existed to make that price viable.

The problem

  • Distance-based pricing kills margin control

    Point-to-point pricing swung roughly ten times across Jakarta — from 16,000 to 160,000 Rp per drop — so businesses could never forecast delivery cost or margin.

  • Speed or cost, never both

    Asset-heavy 3PLs offered a flat price but hub-and-spoke next-day delivery. Asset-light platforms offered same-day but distance-based pricing. Sellers had to compromise.

  • Delivery is absorbed as a margin reductor

    Merchants subsidise or fully absorb shipping to stay competitive, so any unpredictability in last-mile cost lands directly on their P&L.

The product

  • One fixed price per drop

    Any parcel, anywhere within city borders, for a flat 16K Rp per drop — provided it fits a motorcycle load. Batch minimum of 50 drops, with volume-based invoice rebates.

  • Routing built for load and SLA

    A routing engine sequences drops against timeline and load limits, producing reliable same-day routes under a demanding service-level agreement.

  • A trained logistics fleet, not ad-hoc riders

    Drivers are trained as logistics professionals with POD modules and thermo-sensitive equipment on the premium pools, rather than treated as interchangeable capacity.

  • Time-performance driver pay

    Jobs are paid a fixed amount against a slightly over-estimated completion time, so drivers are incentivised to finish early and keep control of their own schedule.

0→1 product · B2B · unit economics

Price certainty vs. the market

Point-to-point (Grab Express, Go Send)

16,000 – 160,000 Rp per drop · same day · unpredictable

Traditional 3PL (JNE, NinjaVan)

Flat price · next day or later · hub & spoke

Lala Fixed-Price

16,000 Rp flat per drop · same day · guaranteed SLA

How an order flows

  1. 01Merchant uploads the day's drop list — recipient, contact, parcel type — in a web template.
  2. 02Cut-off at 12pm for afternoon delivery, 6pm for next-morning delivery.
  3. 03Routing engine batches and sequences drops against load and SLA constraints.
  4. 04Trained fleet delivers same day with digital-signature, stop-based proof of delivery.
  5. 05Merchant is invoiced a flat 16K Rp per drop, with monthly volume rebates.

Plan structure

  • Standard

    Flat per-drop pricing, same-day SLA, digital POD.

  • Plus

    Higher volumes with rebate tiers and broader parcel handling.

  • Premium

    Later cut-offs, lala-box sizes, thermo-sensitive pools, custom POD.

“Businesses keep subsidising delivery to stay competitive to their end consumers, while fixed pricing gives them permanent visibility on their margin impact.”
Managing Director, Lalamove Indonesia

Scale reached

  • 30,000 orders per day.
  • 12% net profit.
  • 50-drop batch minimum, 30kg per unit ceiling.