Hong Kong-based GoGoVan, an app that connects commercial vehicle drivers and customers, is now aiming to expand beyond the island and through the rest of Asia.
According to Gabriel Fong, GoGoVan’s executive chairman, the company that aims to help make the process of delivery or moving more efficient, also seeks to overhaul the way traditional van call-centers operate. Fong said that GoGoVan’s app would respond to a customer’s call in as little as 10 seconds, which is considerably faster than a nearly 30-minute wait that users have to face while calling a traditional commercial van service.
Founded in 2013, GoGoVan now accounts for 50 percent of the van-driver market in Hong Kong with more than 18,000 van drivers currently using the service. The app's users include people moving house or looking to have large items delivered, as well as businesses that need a delivery service.
GoGoVan was recently launched in Singapore and the company is now planning to roll out its services in other Asian markets over the next six months, before expanding to other continents. The company reportedly sees opportunities in major cities in the Asia-Pacific region such as Sydney, Melbourne, Seoul and Tokyo, and plans to cover even bigger markets, including in the U.S. and Europe.
“In every dense metropolitan city, there is a large fleet of vans, motorcycles, trucks, etc., providing last-mile logistics solutions. Some of these vehicles are company-owned and therefore captive and used exclusively for their own requirements. However, there is a large proposition which is essentially owner-operators, whether individually or owned by a small business owner with three to five vehicles,” Fong told TechCrunch.
“For example, in Hong Kong, 35,000 vans of the 70,000 registered vans fall into this category. Our business model is to the link the latter group of vehicles to the ultimate end user in a far more efficient way through an app.”
According to Fong, GoGoVan has significantly reduced the time drivers spend waiting for users to reach them, and this has translated into increased income for some drivers by up to 30 percent.
GoGoVan recently completed a fund-raising round, in which it raised a seven-figure amount in U.S. dollars, TechCrunch reported, adding that investors in the company, include Brian Brille, the former Asia-Pacific chairman at Merrill Lynch & Co.