AirAsia from Malaysian tycoon Tony Fernandez launches parcel delivery service

• The AirAsia group, controlled by Malaysian tycoon Tony Fernandez, has launched a package delivery service as the losing low-cost carrier tries to capitalize on the e-commerce boom in Southeast Asia.

The new service, named AirAsia Xpress, is the company’s latest attempt to expand. Its digital business to support its revenue, which has been hit hard by the Covid-19 pandemic; AirAsia said in a statement Tuesday.

Powered by Teleport – the group’s logistics division – AirAsia Xpress offers its users a great app with two options. Immediate delivery to receive their package in less than an hour, or same-day delivery to receive their package in six hours. The new company complements the airline’s food and transportation services as part of an initiative to build a nifty app that will compete with tech giants in Southeast Asia.

Such as GoTo in Indonesia and Grab and Sea Group in Singapore.

“As the pandemic recovery continues, we believe society will continue to rely on efficient. And affordable delivery services one of AirAsia’s main strengths,” said Lim Ben-Ji, e-commerce delivery manager for app SuperAsia. “By combining our ease of use and reach in ASEAN and beyond. AirAsia Xpress will help individuals and small businesses with fast and convenient delivery.

Southeast Asia is one of the fastest-growing regions globally. The gross value of goods from the digital economy increases 49% year over year to $174 billion this year, according to a new collaboration between Google, Temasek, and Bain & Companies. This month. As consumers in the region increasingly adopt e-commerce and other digital platforms. The study estimates that GMV will grow to $363 billion by 2025 and more than $1 trillion by 2030.

This strong growth trajectory is good for AirAsia. Which aims to increase its share of its digital business to 50% of the group’s sales by 2025. The group is turning to digital business as travel restrictions from Covid-19 reduce passenger and cargo traffic.