Kerry Express Thailand Plc expects the price war in the last-mile parcel delivery business to end next year as many operators in the sector are no longer expected to be able to shoulder the losses generated amid brutal competition. Meanwhile, the company denied a rumour that it would merge with rival operator J&T Express, noting that S.F. Holding recently took a 1% stake in J&T.
Alex Ng, chief executive of Kerry Express Thailand, said Kerry aims to rebound next year through diversification of its revenue by focusing more on the business-to-business (B2B) segment and delivering a greater variety of farm products. "S.F. Holding, our major shareholder, has strong financial support and technical expertise in B2B delivery," Mr Ng said. Mr Ng noted that the rise of e-marketplace operators, such as Lazada and Shopee, which have their own delivery systems, has impacted third party logistics providers, although the range of coverage in terms of deliveries made by these operators tends to be limited to Bangkok and its suburbs.
Comments