From aunties to undergrads: How Shopee's everyday delivery army drove a 300% stock surge

Independent Singapore

a day ago

ASIA: In the global e-commerce arena, giants like Amazon, TikTok Shop, Shein, and Temu grab headlines. However, in Southeast Asia—a region of 675 million people with a rapidly growing US$160 billion (S$205 billion) online shopping market—the leader is an unexpected player. Its name? Shopee. Its color? A bright orange, as unmistakable as a traffic cone.
Although other international players engage in ostentatious drives and viral sales, Shopee silently created a response that is now a scorching sensation on Wall Street. Shares of its parent company, Singapore-based Sea Ltd., have climbed more than 300% since the beginning of 2024.
According to a recent article from SCMP, the key to this 'rebirth' isn't just a smooth app or clever pricing. It's SPX Express, Shopee's in-house logistics arm, which relies not only on branded trucks and large warehouses but also on an unexpected workforce of homemakers, retirees, and students, along with a surprising number of blue Ikea bags.
SPX Express wasn't always a powerhouse. A few years ago, Shopee depended heavily on third-party couriers like J&T Express and Singapore Post. This setup was fragile in a region with numerous islands, scooter-friendly alleys, and dirt roads.
In 2021, the pandemic triggered a surge in online shopping, causing Shopee's delivery network to struggle. CEO Forrest Li made a bold choice: Sea would invest nearly US$1 billion to build its delivery system.
It was a perilous strategy at a rough moment. Sea's stock had fallen nearly 90% from its 2021 highs, layoffs were happening, and operations in Europe and Latin America were closing down. But the investment in logistics proved worthwhile.
Enter Hoirul Hafiidz bin Maksom, a former hospital operator brought in to repair the flaws. He didn't just optimize routes or hire more drivers; he rethought how delivery could function, focusing on community building.
In Singapore, it's common to see a retiree in flip-flops carrying a blue Ikea bag full of Shopee parcels from one apartment to another or a homemaker managing a parcel pickup spot near the elevator. These people are the silent, unrewarded heroes of SPX Express, a portion of a devolved but closely-knit distribution network.
For John, a delivery veteran, the job is more than just a source of income. 'I've made so many friends,' he said. 'I get to chat with elderly neighbours and witness family milestones. It's become part of my life.'
Shopee embraced this community-based model. Inspired by the informal practice of neighbours picking up parcels for each other, Hoirul had a moment of inspiration: why not formalize it?
Today, over 3,500 collection points are spread across Singapore—some in shops and lockers, others in actual homes. Pearlyn Tan runs one out of her flat with her husband, handling as many as 80 parcels a day. For 30 cents per parcel, it's a small but consistent side job. For Shopee, this offers a logistical advantage that no advertisement can replicate.
This community model works well across Southeast Asia's diverse landscape. In Indonesia, Shopee's collection points are in warungs—small family-run shops. In Taiwan, convenience stores host Shopee lockers. Even in Brazil, where Shopee is expanding rapidly, the SPX network is growing fast.
And the numbers support this success: SPX Express now manages the majority of Shopee's billions of annual parcels. It processes up to 400,000 packages daily in sorting centers, where parcels travel down conveyor belts into color-coded bags. In Singapore, 90% of deliveries arrive the next day. Across the region, nearly half are delivered within two days.
This operational métier led to substantial market domination. Shopee now controls 56% of Southeast Asia's e-commerce market by gross merchandise value, according to Momentum Works—far ahead of TikTok Shop (19%) and Lazada (15%).
Sea Ltd. is expected to announce record revenues of US$5 billion in its upcoming earnings report, with e-commerce making up the bulk of that figure. Logistics is becoming a key factor, expected to produce US$799 million—an increase of 14% year-over-year.
However, just like anything else, success came with its challenges.
Singapore residents voiced out concerns about public areas being utilised for the sorting of parcels. Local councils have forced SPX operators to relocate. The gig-style pay model—often around 50 Singapore cents per parcel—means many delivery workers are pushing harder to keep up with increasing volume.
While SPX may have briefly overtaken J&T Express in parcel volume, it still faces hurdles when trying to grow beyond Shopee's ecosystem. Profit margins are tight, and TikTok Shop, backed by deep resources from ByteDance, is a strong competitor.
Nevertheless, analysts like Maybank's Hussaini Saifee remain positive. 'Shopee's retention of its market share is tied to SPX Express, along with expanding the range of products on their platform and lowering prices by collaborating with sellers,' he stated.
Shopee's vibrant orange is now a part of everyday life in Southeast Asia—not just on apps, but also on trucks, scooters, lockers, and in living rooms turned into mini post offices.
Its model may not be flashy, but it is efficient, personal, and deeply rooted in the local community.