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7-Eleven Malaysia defends bike-hailing venture

14 Jan 2020 / 23:22 H.

PETALING JAYA: 7-Eleven Malaysia Holdings Bhd has defended its move to acquire a 46.45% stake in e-hailing motorcycle taxi services operator Myinteractivelab Sdn Bhd (MSB) for RM7.51 million.

MSB is in the provision of delivery services, web development, design and consultation services. It is also the operator, registered and beneficial owner of three mobile applications named Dego App, Dego Partners and Dego Orders.

In response to the Minority Shareholders Watch Group’s (MSWG) weekly newsletter titled “Virtues of Transparent Investing”, 7-Eleven said in a filing with the stock exchange that although the group is involved in the operations of convenience stores, its investment in Dego is expected to provide synergy and added convenience to its customers as the group plans to introduce food and retail goods delivery services directly to them.

While e-hailing bike services may be new and is currently on trial-basis in Malaysia, 7-Eleven stressed that these services are already well-received in countries such as Indonesia, Vietnam and Thailand.

It assured that Dego will continue to be managed by its founder Nabil Fiesal Bamadhaj, who has the experience and has pioneered the e-hailing bike services in Malaysia since 2016.

“With Dego being part of the 7-Eleven group, 7-Eleven has access to its own team of riders and expects to bring synergistic effects and cost savings to the group as there are more than 2,400 7-Eleven outlets located throughout Malaysia.”

7-Eleven also explained that due to the previous suspension of the e-hailing bike services by the government in 2017, Dego was unable to achieve its full potential and hence has not achieved profitability.

“With the recent relaunched of the e-hailing bike services, Dego is well positioned to participate in the government’s initiative in legalising such services and thus further represents a good opportunity for 7-Eleven to invest in this segment at this early stage.”

7-Eleven said the board has considered all aspects, both financial and otherwise including risk and rewards, in the acquisition and it believes that the investment is in the best interest of the group.

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