MANILA, Philippines — toktok, the first Filipino-made delivery and logistics app, celebrated its first anniversary yesterday with 1.5 million downloads and thousands of riders, operators and franchisees under its wing.
Like many game changers, toktok was forged in fire – or in its case, the fire that is the pandemic, which once shuttered the physical outlets of its mother company’s highly successful franchising business, Siomai King. But even as the pandemic brought the world to its knees, business partners Jonathan So and Carlito Macadangdang soldiered on.
Armed with their IT background and guided by sound business acumen, the two migrated their ventures online. They even expanded it to include products that gained popularity in the new normal such as CopperMask, Calvit C and many more.
And as the demand for online delivery services skyrocketed within the group, Cloud Panda Ph, an IT development firm and sister company of Siomai King, CopperMask and JC, created its own delivery and logistics app to help its army of online sellers fulfill their orders.
But why stop there? Eventually So and Macadangdang decided to further develop toktok into an actual enterprise that would not only fill the gap in the delivery service market, but also provide an income-generating opportunity to those who were affected by the pandemic.
On Dec. 8, 2020, toktok was launched in Metro Manila before it debuted nationwide three months later.
Starting with 100 riders, its fleet soon grew to thousands. In April, it started a partnership with SM Malls and eventually with Robinson’s Malls, and now Mega Q Mart for its Pabili Service. It also added a four-wheel delivery service that includes sedans, vans and trucks in its options. The rest as they say is history.
Macadangdang and So traces toktok’s success to a variety of factors.
One is pricing. “Our rates are very competitive,” said Macadangdang, who is also the company’s vice president and CFO. “There are no hidden charges. No matter what time you send your package, there’s an applicable flat rate. This has helped the app climb the charts as one of the most downloaded in Google Play and the App Store,” he said.
So, president and CEO of toktok, said the fact that it is an app developed by a team of Filipino software engineers and designers also contributed to its success. “We are proud to bring a technology that is developed, conceptualized and launched by Filipinos, especially in a field that has been dominated by foreign players for so long,” he said.
The two also credit a unique business model, which makes it possible for anybody to earn extra, as a key element in toktok’s ascent. One can be an operator and manage his or her own fleet of riders to earn seven percent of the delivery fee. By becoming an online franchisee, three percent of the delivery fee can be earned each time his or her ID Number is used for the booking.
Looking at the numbers, the future does seem rosy for toktok. But is it rosy enough for an IPO offering?
“Every businessman probably dreams of being publicly listed. And frankly, we’re not any different. However, we are focusing on growing toktok first and really perfecting the app,” So said.
“The goal is to really make the app an integral part of the Filipino’s daily life. If the opportunity comes for us to grow in that IPO offering direction, then we’ll have to be more prepared. As my partner and I always say, we are always open for growth,” Macadangdang said.
What is more likely though is having TNVS and ride hailing services under the toktok brand. According to So, the company has undertaken steps to expand its services in this direction. “We’re interested. As we’ve previously mentioned, this playing field is full of foreign companies. While they’re the only ones there, we will always try our best to bring the Filipino to the fore,” So said.