on-demand delivery

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On-demand logistics company Lalamove gets $515 million Series E

Lalamove will extend its network to cover more small Chinese cities after raising $515 million in Series E funding, the on-demand logistics company announced on its site. The round was led by Sequoia Capital China, with participation from Hillhouse Capital and Shunwei Capital. All three are returning investors.

According to Crunchbase data, this brings Lalamove’s total raised so far to about $976.5 million. The company’s last funding announcement was in February 2019, when it hit unicorn status with a Series D of $300 million.

Bloomberg reported last week that Lalamove was seeking at least $500 million in new funding at $8 billion valuation, or four times what it raised at least year.

Founded in 2013 for on-demand deliveries within the same city, Lalamove has since grown its business to include freight services, enterprise logistics, moving and vehicle rental. In addition to 352 cities in mainland China, Lalamove also operates in Hong Kong (where it launched), Taiwan, Vietnam, Indonesia, Malaysia, Singapore, the Philippines and Thailand. The company entered the United States for the first time in October, and currently claims about 480,000 monthly active drivers and 7.2 million monthly active users.

Part of its Series D had been earmarked to expand into India, but Lalamove was among 43 apps that were banned by the government, citing cybersecurity concerns.

In its announcement, Lalamove CEO Shing Chow said its Series E will be used to enter more fourth- and fifth-tier Chinese cities, adding “we believe the mobile internet’s transformation of China’s logistics industry is far from over.”

Other companies that have recently raised significant funding rounds for their logistics operations in China include Manbang and YTO.

Lalamove’s (known in Chinese as Huolala) Series E announcement said the company experienced a 93% drop in shipment volume at the beginning of the year, due to the COVID-19 pandemic, but has experienced a strong rebound, with order volume up 82% year-over-year even before Double 11.

Marriott International announces partnership with Grab in six Southeast Asian countries

The COVID-19 pandemic has hit the hospitality industry especially hard, and hotels around the world are looking for ways to regain revenue. Today, Marriott International and Grab announced a partnership that will cover the hospitality giant’s dining businesses in six Southeast Asian countries: Singapore, Indonesia, Malaysia, the Philippines, Vietnam and Thailand.

Instead of room bookings, Marriott International deal with Grab focuses on about 600 restaurants and bars at its properties in the six Southeast Asian countries, which will start being added to GrabFood’s on-demand delivery platform in November. A joint announcement from the companies said the deal represents Marriott International’s “first extensive integration with a super app platform in Southeast Asia and Grab’s most comprehensive agreement with a hospitality group to date.”

Marriott International is the world’s largest hotel company. During the second quarter, as the pandemic curtailed travel and in-person events, it reported a loss of $234 million, compared to the profit of $232 million it had recorded a year earlier. Chief executive Arne Sorenson called it “the worst quarter we have ever seen,” even though business is gradually recovering in China.

The Marriott-Grab integration means the two companies will link their loyalty programs, so GrabRewards points can be converted to Marriott Bonvoy points, or vice versa. Marriott International’s restaurants and bars that accept GrabPay will also have access to Grab’s Merchant Discovery platform, which will allow them to ping users about local deals and includes a marketing campaign platform called GrabAds.

Other hospitality businesses that Grab already partners with include Booking.com and Klook. Klook is among several travel-related companies that have recalibrated to focus on “staycations,” or services for people who can’t travel during the pandemic, but still want a break from their regular routines.