Mober: Driving Pollution-Free Deliveries in the Philippines

Mober Management Team and Sarona Impact Team at the Mober Warehouse in Manila, Philippines, August 2024.

ADI provided first loss equity to SEACEF II in 2023 and engaged extensively to improve their fund offering, helping de-risk the investment and raise USD127 million at first close. SEACEF used the capital to invest in Mober.

Mober, a green logistics company based in the Philippines, has been recognized in Forbes Asia’s 100 to Watch List for 2024. As one of only three companies from the Philippines to make the list, Mober is driving sustainable logistics forward with its electric vehicle (EV) fleet. The company’s mission is to help businesses reduce their carbon emissions without the need for capital investments.

Transforming the Logistics Landscape

The Philippines’ rapid urbanization and booming e-commerce have increased demand for logistics services, particularly last-mile delivery. However, logistics remains a major source of pollution, especially in congested cities like Metro Manila. Mober tackles this challenge by offering electric vehicle (EV) delivery services, significantly reducing emissions.

Launched initially as an on-demand delivery app, Mober pivoted in 2021 when IKEA entered the market. This partnership proved transformative, as Mober now manages 400 daily deliveries for IKEA, contributing to the retailer’s emissions reduction goals. Mober’s EV fleet is expected to reduce carbon emissions by 1,542 tons annually, equivalent to the output of a 1 MWp solar project.

Mober saw a chance to grow with IKEA, and today, it handles all of their deliveries in the country, performing around 400 deliveries a day” says Dennis Ng, Mober’s Founder and CEO.

Mober Technology x IKEA Philippines

With a proprietary Transport Management System (TMS) that tracks every kilometer driven, the company can accurately report on the CO2 reductions achieved by using EVs instead of traditional diesel trucks. This data is invaluable to clients like IKEA, who are committed to reducing their carbon footprint. The real-time CO2 tracking through the battery management system shows clients exactly how much pollution Mober is cutting.

Dennis Ng, Founder and CEO of Mober

Dennis Ng, known as the “EV Delivery Guy” in the Philippines, is the driving force behind Mober’s innovation. His entrepreneurial journey began with Govago, the first taxi-dispatching system in the country. Dennis later founded Chismax Magazine, distributed across Hong Kong, Singapore, Guam, and Tokyo, and played a key role in expanding his family’s salt trading business into the second-largest salt supplier in the Philippines. With a background in auditing from Ernst & Young and a degree in Accounting from Aquinas University, Dennis has leveraged his diverse experiences to lead Mober’s efforts in sustainable logistics.

Innovative Business Model

By offering EV delivery services at the same price as diesel, Mober has managed to attract major clients like IKEA, Nestle, and Starbucks without compromising on profitability.

We offer EV delivery at the same cost as diesel, allowing us to attract big clients like IKEA, Nestlé, and Starbucks while remaining profitable due to EVs’ lower operating costs,” Ng explains.

Mober’s EV fleet

Mober’s business model focuses on both Business-to-Business (B2B) and Business-to-Consumer (B2C) services. For B2B, it provides a dedicated fleet that integrates into clients’ warehouse operations, handling scheduled deliveries for major brands like IKEA and SM Appliance. In its B2B and B2C shared fleet model, Mober offers both mid-mile and last-mile delivery services, supporting same-day delivery for brands like Maersk, Nespresso, and SM Appliance.

This cutting-edge vehicle is equipped with a powerful 282 kW battery and is a 4×2 model, manufactured by Skywell, will undergo a thorough inspection by their engineers before it hits the streets of Metro Manila, where it will play a key role in reducing emissions and promoting eco-friendly transportation.

New trucks to be introduced to the Mober fleet

Through these approaches, Mober efficiently covers a wide range of logistics needs, from large-scale scheduled deliveries for major retailers to flexible, on-demand consumer deliveries.

Scaling for Impact

Despite its growth, Mober faces some challenges. The high upfront cost of electric vehicles (EVs), limited local financing options, and the need for a broader charging infrastructure are major obstacles to the logistics sector’s transition to EVs.

Local banks remain cautious about financing EVs, which has slowed our ability to scale as fast as we’d like,” Dennis explains.

Dennis further notes that developing the necessary charging infrastructure has required substantial investment, and widespread EV adoption in the Philippines is still far from reality. Additionally, operational risks such as unpredictable weather, flooding, and power outages add complexity. However, Mober is taking steps to build resilience into its operations.

The company recently secured a $6 million investment from Clime Capital-managed Southeast Asia Clean Energy Fund II (SEACEF II). SEACEF II is backed by Australian Development Investments (ADI). This funding is intended to accelerate Mober’s phase-out of legacy Internal Combustion Engine (ICE) vehicles and support the expansion of Mober’s fleet in the Philippines to more than 400 units by 2027.

Clime Capital’s support and the SEACEF II investment have been instrumental in helping us build a comprehensive ESG management framework which provides an essential infrastructure to enable Mober to take on its current rapid scale-up,” Dennis shares.

Clime Capital and Mober teams

Investing in Team and Customer Experience

Mober’s success is driven not just by its technology but by its people. Recognizing the importance of skilled drivers, Mober invests heavily in training, especially for those transitioning from manual transmission vehicles to EVs.

We brought in a driver trainer from a driving school to assess and train our drivers. In just one session, we can tell if a driver will adapt to the needs of driving an EV,” says Dennis.

The company employs 190 full-time staff, with 40 working in administration and assembly. Mober also aims to hire women drivers, believing they may be more attentive and aligned with the company’s approach.

Additionally, Mober rebranded its delivery helpers as ‘Customer Service on the Go’ to emphasize their critical role in enhancing customer experience. For IKEA deliveries, drivers are paired with helpers who handle customer interactions, leading to better use of the company’s app and higher customer satisfaction.

Mober office in Metro Manila

The Next Steps

Mober aims to expand its EV fleet and charging infrastructure across the Philippines, with a strong focus on sustainability and customer service. With a robust traction towards its target revenue of USD 5.0 million for financial year 2024, Mober looks to attract additional funding and is in talks with several potential investors, including Australian investors eager to enter the Philippine market.

We have invested heavily in charging stations and are planning to open these facilities to the public. We plan to place charging stations every 100 kilometers along key routes in the Philippines, especially to support long-haul deliveries from Manila to the southern regions,” the founder notes.

As the only company of its kind in the Philippines, this firm is not just delivering goods; it is delivering a vision of a cleaner, more sustainable future for the country. Through their innovative approach and unwavering commitment to reducing pollution, they are setting a new standard for the logistics industry—one delivery at a time.