Some express delivery companies in Thailand are exploring new growth opportunities to reduce their dependence on e-commerce platforms.
To avoid the intense “red ocean” of price wars in the delivery sector, these service providers are shifting their focus toward premium, value-added offerings, such as fresh produce, pet logistics, and medical courier services.
Additionally, they are investing heavily in artificial intelligence (AI) and automation technologies to lower costs and improve operational efficiency.
Regulatory authorities are working on new rules to oversee postal and e-commerce services with the goal of providing greater benefits to consumers.
In 2024, the total estimated value of Thailand’s express delivery market is approximately 117 billion baht, based on the revenues of six leading companies.
Fresh Produce Competition
KEX Express (Thailand), recently acquired by S.F. Holding—one of China’s prominent logistics firms—has integrated advanced technology and expanded its operations, with a strategic focus on cross-border e-commerce between China and Southeast Asia, explained COO Stephen Bao.
In November 2024, KEX ended all its delivery agreements with Lazada and Shopee.
To cope with reduced fees from e-marketplaces, which now pay just 12-14 baht per parcel—down from 18-19 baht—logistics firms are adjusting their pricing models. Mr. Bao highlighted that SF supports Thai agricultural exports by improving logistics from farms to consumers in China, enhancing farmers’ profits.
Looking ahead, SF plans to leverage big data and AI to optimize delivery networks and enhance customer experience.
In January, KEX revised its parcel pricing based on actual weight and dimensions to stay competitive.
Responding to rising demand for fresh produce and plant deliveries, KEX now accepts shipments of fresh fruit and plants in plastic baskets with secure lids. With a capacity of up to 30 kilograms, this service caters to orchard owners and fruit shops, with prices starting at 40 baht for 3 kg.
Flash Express offers free farm pick-up and no minimum order requirements for fruit delivery. Customers can schedule pickups via its app or drop off at affiliated shops. Delivery fees start at 50 baht for the first 2 kg. The company bounced back in 2024, posting a profit of 940 million baht after two years of losses, thanks to investments in technology and infrastructure.
AI and Automation in Delivery
SPX Express in Thailand is enhancing its delivery capabilities through automation and AI applications such as demand forecasting, route optimization, and parcel sorting, which ensure consistent service quality and flexibility during peak times.
CEO Kiattichai Pitpreecha of DHL eCommerce Southeast Asia emphasized the importance of technology investments, which focus on modernization, customer experience, efficiency, and competitiveness. DHL’s customer portal provides tracking and performance analytics, while AI helps streamline back-end operations and last-mile deliveries, reducing errors.
Thailand Post is investing 1 billion baht in 2025 to install automated systems at 19 distribution centers nationwide.
New Market Strategies
Thailand Post is shifting its focus to offering specialized logistics services to mitigate risks from fluctuating parcel volumes on e-commerce platforms, which are turning to lower-cost delivery options. E-commerce growth is slowing, according to company President Dhanant Subhadrabandhu. The company aims to build a stable customer base through niche services, such as delivering medical supplies for humans and pets.
Recently, Thailand Post launched a Healthcare Logistics division and partnered with Chulalongkorn University’s Veterinary Faculty and Bangkok Animal Hospital to provide pet healthcare logistics through EMS, covering veterinary medications and medical supplies for pets. Delivery is offered via home visits and online tele-vet services.
Data-Driven Operations
Sutthikead Chantarachairoj, president of the Logistech Association Thailand and CEO of shipping aggregator Shippop, predicts that fierce price wars are winding down as market players improve performance and reduce competitiveness on rates. During peak competition, companies like KEX, Flash, and J&T offered rates as low as 7-9 baht. Now, providers are shifting toward data-driven strategies to improve profitability.
For example, Flash has introduced key performance indicators to motivate staff to adopt tech solutions that cut costs and enhance efficiency. Despite economic challenges, parcel volumes from online sales remain stable, driven by sustained consumer demand for quality products and strong brand loyalty.
Thailand’s e-commerce market is projected to reach 1.07 trillion baht in 2025, growing 7% annually, according to Priceza.
Regulatory Developments
The Ministry of Digital Economy and Society (DES) is working to update the Postal Act of 1934, expanding oversight to include all postal service providers. The aim is to foster fair competition and improve service quality without burdening small operators.
Meanwhile, the Trade Competition Commission is drafting new guidelines under the 2017 Trade Competition Act, set to take effect in September 2025. These rules will address unfair trade practices, monopolistic behavior, and anti-competitive conduct, particularly targeting multi-sided e-commerce platforms. An earlier complaint from online merchants highlighted that platforms often require merchants to use their proprietary