Diolko Logistics Malaysia Sdn Bhd is a pioneer of sustainable, hybrid delivery model which integrates the Light Rail Transit (LRT) network with electric vehicles to overcome the last-mile dilemma faced by the freight industry.
The ground-breaking business model strives to reduce carbon emissions through green transportation technology and enhance delivery efficiency through data analystics and logistical algorithm.
Launched in 2020 and started operation this year, Diolko’s model combines cutting-edge logistical solutions with a strong commitment towards environmental sustainability in fulfilling market demand for parcel delivery in high-density urban areas within the Klang Valley.
The Land Public Transport Commission, which monitors rail operation, has reviewed and approved the use of Diolko’s proprietary trolleys on the LRT network. Diolko has worked closely with the train operator to establish Standard Operating Procedures (SOPs) to ensure the safe and secure transport of parcels using the LRT network.
The proprietary trolleys, designed and manufactured in Malaysia, are specifically built for secure and efficient transport on the LRT coach.
The capacity and flexibility offered by the LRT network have added to the competitive edge of Diolko. With off-peak services running every 12 minutes, the frequency of the trains allows for frequent distribution of parcels, enabling faster delivery.
During the service launch in early July 2024, the company successfully completed over 700 orders utilising the electric delivery vehicle fleet, including proprietary trolleys, e-bikes, and e-vans.
Diolko currently employs 23 employees in the operations and software development divisions.
Since July, Diolko has successfully raised an impressive RM2.5 million in funding through contributions from the co-founders and private investors, in addition to public funding from the government.
Diolko is exploring the feasibility of adding collection/drop-off points for point-to-point same-day delivery while capitalising on the current strategy that centers around next-day delivery.
In addition to operational innovation, Diolko actively markets its sustainable delivery solutions to B2B1 and B2B2C2 clients in the e-commerce, wholesale, retail, and logistics sectors.
Diolko engages directly with environmentally conscious e-commerce platforms, e-fulfillment providers, and large brands, as the ultimate decision on logistics providers rests with the businesses themselves.
Delivery scenario: Parcel Delivery (50g) from Bukit Bintang to Cheras
Order Time: 10:00 AM, Monday
Delivery Estimate: Next-day delivery
Route:
● Pickup: The 50g sample parcel is collected directly from the customer located in Bukit Bintang.
● LRT Transport: The parcel is then sent to the nearest LRT station hub for transporting via the LRT network.
● Sorting & Dispatch: The parcel is then dispatched via the LRT network to the nearest destination station in Cheras and stored overnight at the destination hub for the final delivery phase.
● Final Delivery: Starting at 9:00 AM on Tuesday, Diolko’s fleet of electric bikes and vans—chosen based on delivery location, parcel size, and volume—will begin delivering parcels from the station hub. All deliveries are completed by the end of the day.
The delivery is routed using Diolko’s intelligent dispatching algorithm, which optimises speed and energy efficiency by factoring in delivery location, parcel size, and LRT station accessibility.
