Indonesia’s Blue Bird taxis embark on home delivery

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TaxiDriverIndonesia’s biggest taxi operator Blue Bird, which plans an initial public offering at the Jakarta Stock Exchange in the fourth quarter of 2013, said it wants to increase revenue by not just boosting its taxi business, but also by venturing  into logistic for companies and delivery services for goods like sandwiches and electronics to a burgeoning middle and affluent class that is estimated to double to 141 million people by 2020.

The goal to raise the logistics share of business to 50 from 10 per cent highlights opportunities to profit from poor public infrastructure in Southeast Asia’s largest economy, where high logistics costs add to inflation and create delays. Blue Bird sees more companies wanting to avoid the hassles of dealing with distribution, and is relying on its reputation for reliability that has spawned a host of copycat taxi operators.

Blue Bird has about 28,900 vehicles, more than three times its closest rival Express Transindo, which is already listed and whose shares surged 91 per cent this year.

Blue Bird seeks to raise at least $600 million from the IPO. The family will retain a majority stake while proceeds will be used to expand taxi operations. However, one drawback was the recent fuel price rise in Indonesia.

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Reading Time: 1 minute

Indonesia’s biggest taxi operator Blue Bird, which plans an initial public offering at the Jakarta Stock Exchange in the fourth quarter of 2013, said it wants to increase revenue by not just boosting its taxi business, but also by venturing  into logistic for companies and delivery services for goods like sandwiches and electronics to a burgeoning middle and affluent class that is estimated to double to 141 million people by 2020.

Reading Time: 1 minute

TaxiDriverIndonesia’s biggest taxi operator Blue Bird, which plans an initial public offering at the Jakarta Stock Exchange in the fourth quarter of 2013, said it wants to increase revenue by not just boosting its taxi business, but also by venturing  into logistic for companies and delivery services for goods like sandwiches and electronics to a burgeoning middle and affluent class that is estimated to double to 141 million people by 2020.

The goal to raise the logistics share of business to 50 from 10 per cent highlights opportunities to profit from poor public infrastructure in Southeast Asia’s largest economy, where high logistics costs add to inflation and create delays. Blue Bird sees more companies wanting to avoid the hassles of dealing with distribution, and is relying on its reputation for reliability that has spawned a host of copycat taxi operators.

Blue Bird has about 28,900 vehicles, more than three times its closest rival Express Transindo, which is already listed and whose shares surged 91 per cent this year.

Blue Bird seeks to raise at least $600 million from the IPO. The family will retain a majority stake while proceeds will be used to expand taxi operations. However, one drawback was the recent fuel price rise in Indonesia.

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