If you’re an online shopper, which is essentially mandatory now due to the Covid-19 outbreak, you’re probably familiar with this red van:
Yes, it’s Ninja Van, the logistics company providing delivery services that many have a love-hate relationship with.
Some complain of late deliveries, while others are disappointed when they don’t see an actual ninja courier when they get their first package.
With the Covid-19 outbreak keeping everyone indoors, Ninja Van is experiencing a surge in orders and struggling to keep up with rising costs.
Fortunately for them, they just received a boatload of cash from investors.
New Round of Investments
The delivery firm said it raised US$279 million (S$394 million) in funding from investors including Facebook co-founder Eduardo Saverin’s B Capital.
The latest round of investments in Series D funding was led by French parcel delivery firm GeoPost and two sovereign wealth funds, and joined by other existing investors including Grab and Monk’s Hill Ventures, according to sgsme.sg.
And with the surge in orders due to Covid-19, you’d think Ninja Van would be drowning in cash right now.
But, according to chief executive Lai Chang Wen, cargo pricing has increased and driver productivity has been affected not only by social distancing measures but by a shift in basket mix as well.
“The nail in the coffin for productivity is that we used to have a mix of fashion, gym equipment and dry goods. But now that mix has shifted; a lot more heavy equipment and cartons of water instead of nice dresses in a small pack. That mix changed so quickly that it was hard to react. Cargo became a lot heavier,” he said, adding that the company has adapted since then.
Some People Didn’t Know They’ve Not Broken Even Yet
Yes, while some would think the latest round of investments coupled with the spike in orders would exponentially increase their profits, Lai says the company hasn’t even broken even yet.
And netizens were certainly surprised at this revelation.
Others voiced their dissatisfaction with the company’s delivery services.
Man, people really hate their deliveries.
At any rate, even though he doesn’t have a concrete timeline right now, Lai is confident of breaking even.
And as Associate Professor Nitin Pangarkar of the National University of Singapore Business School said, Ninja Van’s large funding round could make it harder for its competitors to catch up.