Hong Kong-based on-demand logistics company Lalamove on Wednesday officially announced its entry into Ha Noi, one year after it started operations in HCM City.

Lalamove aimed to have more than 10,000 regular drivers with an average monthly income of VND7 million (US$305) in the two cities as of the first quarter of next year.

According to Philippe Rambaud, Lalamove’s head for Ha Noi market development, Viet Nam was a huge market for on-demand shipping companies such as Lalamove. He estimated that by 2020, the country would have more than 50 million people shopping online with the booming e-commerce industry.

Lalamove provides on-demand motorbike delivery service at the fees of VND25,000 for the first five kilometers and VND5,000 for each additional kilometer for packages with the maximum weight of 30 kilograms.

Nguyen Duc Loi, CEO of Lalamove Viet Nam, said that the company would not compete on price with other delivery companies like Grab, but will focus on enhancing service quality and supporting the sustainable growth of the shipping profession in the digital economy.

According to Charles Chamblas, Lalamove’s market development director, the participation of Lalamove in the big cities of Viet Nam was expected to improve the quality of shipping services.

Founded in October 2013, Lalamove now has a presence in seven Asian countries, including China, the Philippines, Indonesia and Malaysia.

As of May 2018, Lalamove operated in 112 cities. The company entered HCM City in September 2017. — VNS