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Hepsiburada expands fleet with electric delivery vans

EditorEmilio Ghigini
Published 02/07/2024, 15:00
HEPS
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ISTANBUL - D-MARKET Electronic Services & Trading, known as Hepsiburada (NASDAQ: HEPS), a Turkish e-commerce giant, has integrated electric vans into its last-mile delivery service, HepsiJet, in a move to boost sustainability efforts. The company has introduced 21 electric vans for cargo distribution in various regions of Türkiye, marking a step forward in its environmental initiatives.

These electric vehicles are set to reduce carbon emissions by about 0.21 tons for every 1,404 kilometers they travel monthly. The use of electric vans is also expected to lower operational costs, thereby increasing the efficiency of the delivery network.

Currently, HepsiJet operates nearly 3,500 vehicles, and plans are in place to expand the electric van fleet to 50 by the end of 2024, following assessments of their efficiency and performance.

Hakan Karadoğan, CEO of Hepsiburada Logistics Group, stated that the deployment of eco-friendly delivery vans is a significant achievement in the company's pursuit of reduced fuel consumption and carbon emissions. The initiative aligns with the company's broader sustainability goals and commitment to creating a greener logistics network.

The electric vans have begun deliveries in major cities with high population densities, including Istanbul, Ankara, Izmir, Muğla, and Antalya. This strategic move is likely to enhance the company's reputation as a forward-thinking, environmentally conscious organization.

Hepsiburada, established in 2000, is a prominent e-commerce platform in Türkiye that connects millions of members with a vast array of products. The company offers a comprehensive ecosystem for merchants and consumers, featuring services such as last-mile delivery, advertising, on-demand grocery delivery, and payment solutions.

Additionally, Hepsiburada has made significant strides in social initiatives, notably supporting female entrepreneurs through its 'Technology Empowerment for Women Entrepreneurs' program since 2017.

This advancement in Hepsiburada's logistics services, as revealed in a press release statement, demonstrates the company's dedication to innovation and sustainability in the e-commerce sector.

In other recent news, Hepsiburada, a prominent Turkish e-commerce platform, delivered robust financial results for Q1 2024, surpassing expectations. The company reported a 138% year-over-year growth in Gross Merchandise Value (GMV) and a 120 basis point improvement in EBITDA.

Revenue skyrocketed to TRY1 billion, a substantial increase from the previous year's TRY102 million. These results were driven by a strong rise in networking capital, operating monetary gains, and realized foreign exchange gains.

Hepsiburada's loyalty program and delivery service played a significant role in the company's success, and the financial services arm, Hepsipay, is poised to capture a considerable market share in consumer loans.

The company anticipates a 75% YoY GMV growth in Q2 2024 and an EBITDA range of 1.8% to 2% of GMV. Despite expecting a slowdown in categories such as computers, Hepsiburada is confident in its market share growth, outpacing competitors including Amazon (NASDAQ:AMZN) in Turkey.

Upcoming regulatory changes in 2025 are projected to support small and medium enterprises and impact larger competitors. These are recent developments in Hepsiburada's business landscape.

InvestingPro Insights

As Hepsiburada (NASDAQ: HEPS) continues to innovate with sustainability at the forefront of its logistics operations, the company's financial health and market performance also provide a compelling story. According to InvestingPro data, Hepsiburada has a market capitalization of $742.39 million USD. The company's revenue growth has been impressive, with a 133.92% increase in the last twelve months as of Q1 2024, indicating a robust expansion in its business operations.

InvestingPro Tips highlight that Hepsiburada is expected to see net income growth this year, which may be a reflection of its strategic investments in efficient technologies such as the electric vans for its last-mile delivery service. Additionally, Hepsiburada's stock has experienced a significant return over the last week with a 16.08% increase, showcasing investor confidence that could be tied to its latest sustainability initiatives and operational improvements.

It's worth noting that the company is trading at a P/E ratio of 76.12, which, while high, may be justified by its near-term earnings growth prospects. For investors looking for more insights and tips on Hepsiburada, InvestingPro offers additional analysis and metrics that could guide investment decisions. There are 19 more InvestingPro Tips available, which can be accessed with an exclusive offer using the coupon code PRONEWS24 for up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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