State-owned Cambodia Post has partnered with the private sector to establish a new company that is expected to launch and manage a heavyweight e-commerce platform for the local market by early 2018.
The new venture, Cambodia Post eSolution Co Ltd, will develop a platform for e-commerce as well as e-banking and online courier services. The platform will also facilitate payments to relevant government institutions such as the Tax Department.
Cambodia Post holds a 10 percent stake in the new venture, which was established with an initial investment of $1.5 million, according to Ork Bora, director-general of Cambodia Post. Chinese firm ZVS Investment Co Ltd holds a 50 percent stake in the new company, while local tech company Paxxa Mobile Solutions Co Ltd has a 40 percent stake.
Bora said the new e-commerce company was envisioned as a way of diversifying the national post service operator’s revenue streams by tapping into the rapid growth of online transactions in Cambodia.
“As Cambodia Post is already successful in providing delivery services this is an opportunity to expand our services into e-commerce,” he said yesterday.
Bora said the internet platform will provide a space for some 5,000 local businesses to advertise their products and services to potential customers. Listing on the site will initially be free, while orders will be delivered using Cambodia Post’s package delivery services.
“We will work with local businesses to post their products on our platform and will earn revenue on pickup and delivery,” he said. “[The platform] will launch by early next year and we hope firstly that it will increase the revenue for private sector businesses, and together we will all have success through e-commerce.”
Cambodia Post’s revenue increased by 74 percent last year to over $9.4 million, while net profit soared by 195 percent to $586,481. Total revenue amounted to $4.2 million during the first six months of 2017, a 64 percent increase compared to the same period a year earlier.