This article was originally published in Chinese on Momentum Works’ WeChat platform, and translated into English by the Momentum Works team.

Recently, our friends in Jakarta, found that there was a new feature called ‘Shopee Express’ (in-city instant delivery service) on the Shopee app.

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The business description states ‘Order now, delivery in 2-3 hours’

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The service supports the delivery of documents, food, clothing, electronics, etc. Users can choose to purchase insurance for a total of IDR 10 million (about USD $700) for IDR 500 (about 35 cents)

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Payment can be made with ShopeePay or cash from the sender/receiver.

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Momentum Works tested the service in Jakarta by sending a parcel. The total cost was IDR 43,000 (USD $2.93).

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For the same delivery, the discounted price on Grab was IDR 33,000 while on Gojek it was IDR 44,000.

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Unsurprisingly, the riders who came to collect the parcel were wearing Shopee Food’s uniforms.

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It seems that our guess was right. While Shopee has built a distribution network by subsidizing food delivery on a large scale, it can’t wait to improve the order volume and efficiency of the distribution network through on-demand delivery services. And with ShopeeFood’s subsidy in Malaysia and Thailand – it looks like the target is clear.

Roll up!

If you found this interesting and want to know more about Shopee, register for Momentum Academy’s Off the Record – Behind Shopee’s Doors. We will give you in-depth insights into their strategies, culture and what goes behind their decisions.

It is happening this Friday, 4 March between 3-4pm SGT

You can reserve your free spot here – https://www.eventbrite.sg/e/off-the-record-behind-shopees-doors-tickets-269307504997 

Thanks for reading The Low Down (TLD), the blog by the team at Momentum Works. Got a different perspective or have a burning opinion to share? Let us know at hello@mworks.asia.