The novel coronavirus pandemic has given e-commerce a big boom and the online sales generated has no end in sight. Package volume is soaring and has made an impact on package logistics, especially at a time when e-commerce is evolving into the next stage – q-commerce (or quick commerce). Local logistics technology firm Zeek is benefiting from the shift of shopping behavior and the rise of q-commerce.
A brand behind brands
The consumer market may not have heard about Zeek, but most Hong Kong people probably have enjoyed their services. Ordering a hamburger from 24-hour McDelivery, purchasing a latte through Starbucks Delivers, buying a bottle of shampoo from HKTVmall Express, and getting a shelf from Pricerite…all of these purchases are likely delivered by Zeek.
“We are a B2B2C business, helping suppliers and retailers deliver their products to the end customers, usually in a short period of time.” KK Chiu, Co-founder and CEO of Zeek, explains.
“A short period of time” at Zeek means as short as 30 minutes.
We want it fast
By adopting big data and artificial intelligence, Zeek is strong at offering smart logistics and on-demand delivery for quick commerce of food, groceries and lifestyle products, as well as software-as-a-service (SaaS) solutions to fulfill various kinds of logistics needs.
“Why should we wait for three days while we can have our online purchases delivered on the same day?” Chiu asks.
Famed as a shopper’s paradise, Hong Kong is packed with shops from glamourous malls to bustling street markets. People can easily get what they want by just getting out in the streets. But given the coronavirus crisis is ongoing, shopping online has become a major trend for all ages and all walks of life. And when people get more used to online shopping, they start to recognize the advantages of it, including the wider choices, convenience and potentially better deals compared to physical stores. Yet, with a fast pace of life, Hong Kong people are hoping to get their deliveries as soon as possible so that is one of the key challenges for online retailers to deliver their goods to their customers quickly and efficiently.
Delivery on-demand
This is the market that Zeek is targeting. Unlike traditional logistics firm with a set number of vehicles, riders, daily orders and consolidated consignment cut-off time, the company leverages technologies to cater for dynamic pop-up orders that require speed and flexibility. Their ZeekNow, ZeekDash and Zeek2Door options offer 30-minute, 2-4-hour, and same/next-day delivery respectively.
The process of getting goods to customers' hands as quickly as possible has actually become a big focus of venture capital investments. Chiu is confident that their quick delivery services will still be in high demand even when the pandemic is over. “During the worst time of the pandemic, retailers and restaurants were relying on existing platforms to deliver orders. But now, when we are edging back to ‘normal’, business owners begin to look for ways to deliver their products to the end customers, without paying the high commissions charged by delivery companies.” Businesses want to take back their control of customer relationship management, and this is where Zeek can help.
Hybrid retail
Although people have gotten used to online shopping and quick delivery in the past 24 months, Chiu believes that, at least in Hong Kong where there is a well-developed and convenient shopping culture, retail will take a hybrid mode in both physical and virtual formats. “People will still go out shopping, but they now know that they have an option to stay home and get what they want quickly, especially for goods that they buy routinely such as packaged rice, disposable diapers and pet food, or things that are not available in a near distance.”
For brands and products that are well-known, people are more likely to shop online. They go to shops to look at and try out new products. Physical retail will be more like showrooms or experiential centers, and warehouses. “With the high rent in Hong Kong, more shop owners will squeeze the shopping areas and turn part of the space into warehouses,” Chiu predicts. It is critical to leverage stores as distribution points so that the products are physically closer to the end customers who shop online. “Even supermarkets may get smaller.”
Think big
Zeek currently has operations in Singapore, Thailand, Vietnam, Malaysia and is planning to cover Taiwan, Philippines and Indonesiasoon. It is a start-up that is expanding and has just raised US$7 million (HK$54.6 million) in a new round of funding in the second quarter of last year. Asked how to secure financing from strategic investors and investment funds, Chiu advises local start-ups to think big. “It is important to paint a future with upside potential and rooms for imagination.” The Hong Kong market is small. To succeed, any business should either be a dominant market player, or expand to other countries. Just like what Zeek does.
