Annual Report 2020

The licence is a first step towards BigPay’s eventual goal to become a digital bank. Towards this end, it has plans to launch a whole suite of products and services. In 2021 itself, customers can look forward to performing cash top-ups at local convenience stores, buying insurance, obtaining digital loans and enjoying wealth management advisory. All in the easiest, most hassle-free manner. TELEPORT Teleport aims to deliver things from A to B anywhere in Asean in under 24 hours. Combining modern technology with hundreds of small operational efficiencies, it creates a logistics experience that is simple. And works like magic. What gives Teleport its edge is the ability to leverage Asean’s largest airline, AirAsia, to move people and things together on flights at the same time. This is not only fast, efficient and profitable, it also enables our logistics arm to make one-day delivery a standard for the region. In 2020, abrupt border closures due to the pandemic impacted Teleport’s regional belly network, reducing its overall revenue by 42% y-o-y to USD66 million. Nevertheless, it was still a year of rapid invention. In March, Teleport became the first in Malaysia to operate passenger aircraft for cargo-only flights. This was necessary not only to cater to overwhelming customer demand but, more importantly, to support the critical need to transport medical aid and essential goods in response to the global pandemic. Throughout the year, Teleport operated over 1,400 cargo-only flights to 46 destinations on behalf of partners including The Edge Covid-19 Fund, the Ministry of Foreign Affairs Malaysia, Jack Ma Foundation and the International Committee of the Red Cross (ICRC). This included more than 360 Transportation of Cargo in Passenger Cabin (TCPC) flights in which additional cargo was loaded on seats, overhead stowage compartments and under the seats. It also moved cargo on third-party freighters for the first time in March. This has since evolved into a broader growth strategy to move cargo on any third-party airline in addition to our core AirAsia network. In April, at the height of disruptions to global supply chains, Teleport launched Freightchain, the world’s first digital air cargo network run on blockchain. Any shipper or freight forwarder can search for itineraries on Freightchain, and submit bids to confirm air cargo bookings on member airlines instantly without the need to go through traditional time-consuming sales or email channels. The first pilot booking on Freightchain was a pharmaceutical shipment from Bengaluru, India to Ulan Bator, Mongolia via three different airline connections, executed through a smart contract and recorded on the blockchain ledger. Since its inception, Freightchain has on- boarded eight airlines and more than 150 shippers, facilitating 372 transactions and USD3.7 million in gross transaction value (GTV). Meanwhile, with most of the fleet grounded throughout 2020, Teleport accelerated the push into delivering on ground to homes in every Asean city that it flies to. This service was kick-started by delivering for over 2,000 small businesses hit hard by the first MCO in Malaysia as part of AirAsia’s Save Our Shops (S.O.S) campaign. Subsequently, it expanded to include the delivery of e-commerce products under airasia food, airasia fresh and airasia beauty to form a key component of the overall airasia super app platform strategy. Throughout 2020, Teleport delivered approximately 228,300 e-commerce orders, marking a more than 30-fold increase in monthly deliveries since the start of the year. This was supported by an expanded crowdsourced fleet of over 3,720 onboarded delivery partners (known as Teleporters) across the region. Approximately 20% of the pool consists of Allstars including pilots and cabin crew affected by the pandemic. By December, Teleport had successfully scaled its delivery services regionally, simultaneously expanding to 77 cities across the five focus countries of Malaysia, Singapore, Thailand, Indonesia and the Philippines. Its outstanding performance in a year marked by the pandemic led to Teleport being awarded the Frost & Sullivan Southeast Asia Entrepreneurial Company of 2020. 2021 represents an opportunity for Teleport to showcase at scale its ability to deliver anywhere to-door in Asean in under 24 hours. In particular, as domestic flights recover in Malaysia, it expects to 85 ANNUAL REPORT 2020