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Indonesian Delivery Platform J&T to Expand to Mexico

By Alfonso Núñez | Wed, 03/16/2022 - 16:45

The globally successful Indonesian logistics unicorn J&T Express has announced plans to enter the Latin American market by way of Mexico. It will begin by opening up sorting and distribution centers and introduce the company’s mobile app in the country.

 

J&T Express primarily operates in Asia but is continuing its international expansion and reaching new markets. Founded in 2015, the delivery company already operates in 10 countries and offers services to over 2 billion people. In the last seven years, J&T Express made a name for itself as one of Indonesia’s biggest unicorn success stories as it delivers an average 2.5 million packages a day in the country. In April 2020, it received a US$7.8 billion valuation.

 

In its latest funding round, J&T Express raised US$2 billion in funds from several investors, including Temasek, Hillhouse Capital and Sequoia Capital China. These funds will be used for the continued expansion of its services according to the company. Just two months ago, the company expanded its services into United Arab Emirates and Saudi Arabia. Now, Latin America is the next frontier in the company’s aggressive expansion plan.

 

J&T Express will open operations in Mexico with 12 sorting centers and 26 distribution centers across the country in key locations that will allow the company to access the country’s 32 states. The delivery service’s mobile app will allow customers to access and manage logistics services.

 

"As part of a new generation of express logistics companies with increased focus on internationalization, J&T Express attaches significant importance to the Latin American market. The launch in Mexico is an integral step in the expansion of our global network, which further demonstrates the benefits of the regional sponsorship model in our global expansion,” said Charles Hou, Group Vice President, J&T Express.

 

The pandemic’s exponential increase of e-commerce allowed logistics startups across the globe to reap the benefits of shifted customer expectations for delivery services. Shortened wait times and increased digital tools through AI technologies optimizing routes and processes have resulted in exponential success across the industry. Mexico in particular serves as a strategic location for logistics companies in and out of the region looking to successfully enter the Latin American market.

 

"Mexico is a logistics hub in Latin America, and home to the headquarters of many Latin American companies. It serves as an important strategic channel for J&T Express to continue its expansion in the market. This network launch is another milestone in J&T Express’ international strategy, and we hope to create a pleasant courier and shipping experience for our Mexican customers through efficient and high-quality services,” said Ryan Zhang, Head, J&T Express Mexico.

Photo by:   Unsplash, Handy Wicaksono
Alfonso Núñez Alfonso Núñez Journalist & Industry Analyst