In the global dispute of e -commerce, dominated by giants such as Amazon, Shein, Temu and Tiktok Shop, a fluorescent orange player reigns absolute in Southeast Asia: Shopee. The application, controlled by Sea Ltd., based in Singapore, has become a regional phenomenon by betting on something that its rivals underestimated: proximity logistics, made literally by the community.
The result surprised the market. Since early 2024, SEA shares have risen more than 300% on the New York Stock Exchange, raising the company’s market value to about $ 100 billion. Of the 41 analysts accompanying the company by Bloomberg, 33 recommend purchase.
The Secret: SPX Express
In the heart of the strategy is SPX Express, a logistics arm that was born in silence and today processes billions of packages per year. Unlike the heavy operations of Amazon or the dependence of J&T Express Tiktok Shop, Shopee has created a capillarized network: homeowners, retirees and small traders transformed into delivery or collection points.
Take your business to the next level with the help of the country’s leading entrepreneurs!
In Singapore, it is common to see a “uncle” of slippers carrying Ikea bags full of packages or a housewife who set up a makeshift counter next to the elevator. This neighborhood logistics reduced costs, accelerated deliveries, and brought the brand closer to consumer life.
The model has expanded: there are already more than 3,500 collection points only in Singapore, including living rooms transformed into miniagencies. In Indonesia, they work in Warungs. In Taiwan, in conveniences. In Brazil, the network also grows.
From crisis to turn
The jump didn’t seem obvious in 2021. The pandemic had inflated the demand, but the delivery bottlenecks suffocated the operation. Sea then decided to risk almost $ 1 billion to erect its own infrastructure. In the short term, the decision weighed: the company lost 90% of the market value amid the CRASH of global techs and had to cut 7,000 jobs.
Continues after advertising
But the bet paid. By 2024, SPX already accounted for 25% of the Southeast Asian logistics market, according to Momentum Works. Today, in Singapore, 90% of orders are delivered the next day; In the region, half arrives within two days.
A business that becomes community
For many, the work has become an extra source of income – though modest. In Singapore, deliveries receive an average of 0.50 dollar of Singapore per package ($ 0.37). Some organize up to 80 deliveries a day, enough to pay part of the week’s purchases. But the effect goes beyond money: SPX has created social ties in dense neighborhoods, with deliveries reporting new friendships and a sense of belonging.
This “human touch” became competitive differential, according to analysts. “The visibility of the Shopee orange, combined with the proximity to the residents, reinforces the brand’s presence in the local daily life,” says Jianggan Li of Momentum Works to Bloomberg.
Continues after advertising
What comes ahead
The model, however, is not free of tensions. Municipalities in Singapore complain about the use of common areas for package screening, and the remuneration structure is criticized for being close to temporary “nozzles”. In addition, although SPX briefly surpassed J&T by volume, its margins are still narrow.
Even so, Shopee has consolidated itself as part of the social fabric of the region. And for investors, the logic is clear: the more the company can turn neighbors into logistics partners, the more resiler will be facing rivals such as Tiktok Shop, which burns cashier to gain space.
In the short term, Sea Sea reports in August a record revenue of $ 5 billion, with e-commerce representing 72% of this total and logistics gaining increasing weight.
Continues after advertising
Shopee’s history shows how, in e-commerce, it’s not enough just to have a powerful digital platform. It is also necessary to reinvent the physical path of the goods – even if it means delivering packages in the neighboring room.
