KUALA LUMPUR (May 27): Lambo Group Bhd said its subsidiary has been engaged as a fulfillment agent for last mile delivery by the operator of Malaysia’s largest homegrown online shopping platform.

The logistics group said the agreement between its subsidiary Lambomove Sdn Bhd and Presto Mall Sdn Bhd, the operator of PrestoMall (previously known as 11street Malaysia), was signed today.

Under the deal, LamboMove will assign drivers and riders to dedicated warehouses daily to facilitate last mile delivery jobs.

“LamboMove will also provide event tracking of parcel during the last mile deliveries,” Lambo said in a statement.

Presto Mall, meanwhile, will provide the necessary information to enable LamboMove to plan for the collection and delivery to the customers, it added

“With more consumers shopping from home during the COVID-19 pandemic, Presto Mall is expanding its needs for last-mile delivery services,” said Lambo executive director Calvin Koo Kien Yoon.

Koo said the limited mobility due to the lockdowns and restricted movement have resulted in many local businesses struggling to find a sustainable way to deliver orders to their customers in a safe and timely manner.

“The application of technology is imperative to make a smooth delivery process possible. Lambo Group has developed an artificial intelligence (AI) technology to sort out the shortest route, and the fastest delivery time to optimise the delivery process, this will ensure local deliveries can be fulfilled within the same day and satisfy the demand from door to door,” he added.

The agreement is valid for one year or any further term as mutually agreed by both parties.

Lambo said the agreement is not expected to have material effect on its earnings, net assets and gearing for the current financial period ending May 31, 2020.

"Nonetheless, Lambo will expect positive contribution on its earnings in the future should the collaboration be finalised and commercialized," it added.

Lambo's share price closed unchanged at two sen with a market capitalisation of RM45.89 million.