Ayala Group bets big on logistics, e-commerce

MANILA, Philippines — Ayala Corp., the country’s oldest conglomerate is making a bigger bet on logistics and e-commerce given the changing consumer needs brought about by the COVID-19 pandemic.

“We want to be a major player in the logistics field, in certain spaces where we believe we can really make a difference,” said AC Infrastructure president Rene Almendras.

He said there are so many segments that are in need of growth capital and technology and logistics will certainly play a major role in this.

Almendras said there is room to expand in the logistics business because the country is still a laggard compared to its neighbors. Aside from this, the cost of logistics is also high.

Two years ago, Ayala launched Entrego Fulfillment Solutions Inc., which offers an integrated suite of services including parceling, document and deliveries.

Entrego aims to be a major technology driven logistics provider in the country.

Almendras said Entrego is in discussions with many family-owned logistics companies which have proven their worth through the years.

“We are hoping to partner with some of them so we can effect transformation or the disruption that we want to happen,” said Almendras who also heads Entrego.

“We will be working closely with Ayala Land’s logistics platform,” Almendras said, adding that the goal is to create a logistics ecosystem that is at par with global standards.

Ayala president and CEO Fernando Zobel de Ayala said the company would expand its core drivers, Ayala Land, BPI and AC Energy, as well as scale up businesses in healthcare, education, and logistics.

Last year, Ayala posted a 51 percent decline in net income to P17.1 billion.