By James Loyola
Black Arrow Express (BAE), a subsidiary of total logistics provider AAI Group of Companies (AAI Group), has signed a Memorandum of Agreement with M Lhuiller (ML) which will expand the fast-growing express delivery firm’s market reach nationwide.
In a statement, AAI said the MOA was signed in Cebu City between BAE President Allan Brizuela and ML President & CEO Michael L. Lhuillier last September 4, 2017. ML is a national pawnshop network which has expanded to provide financial and remittance services nationwide.
The agreement will allow consumers to “Drop and Ship” logistics services by Black Arrow in more than 2000 ML branches nationwide. Customers will be able to drop off their packages and book them for shipment in any of the ML branches.
This latest BAE-ML partnership will likewise enable small businesses riding the E-Commerce wave to ensure quick and timely delivery of their products to their customers.
Black Arrow currently provides logistics and delivery services to E-commerce retailers such as Shoppee, ABS-CBN TV Plus and Bench Online.
BAE provides “First Mile to Last Mile” logistics solutions through its national network of hubs and spokes. It includes but is not limited to retail and courier express delivery services.
The firm serves as delivery and distribution for institutional marketers to consumers as well as retail express delivery for individuals with special emphasis in technology-based logistics solutions for e-commerce fulfillment.
BAE offers its clients seamless system integration, while offering Same Day, Next Day delivery fulfillment using its mixed fleet of motorcycles, vans and trucks.
The AAI Group of Companies is planning to raise R3 billion to R5 billion from an initial public offering by 2020 to fuel the rapid growth in its new retail express delivery business.
In an interview, AAI Chairman Uldirico V. Brizuela said they will have to increase capital expenditures to rapidly scale-up their express delivery service through recently-organized Black Arrow Express to catch up with more established competition.
Brizuela noted that while the company has already made a name by offering a full range of logistics solutions from large size and volume shipments to storage and handling, they had put-up Black Arrow only last year.
Black Arrow Chief Strategist John Walter Baybay said that, for this year alone, the firm is planning to expand its delivery hubs to 40 from the current 7 while raising their number of motorcycle-riding couriers to about 1,400.
“We need to catch up and expand rapidly because the potential is there and the market is growing,” Baybay said.