As it zooms past its first anniversary on Dec.8, toktok continues to break new ground — riding strong on the wheels of thousands of riders, franchisees and operators, as well as hundreds of retailers who have since signed on to be part of the country’s first all-Filipino delivery and logistics app. Are ride-hailing services and an IPO offering on the cards for this fast-rising Pinoy enterprise? For founders Jonathan So and Carlito Macadangdang, it could happen in “God’s perfect time.”
Like many game changers, toktok was forged in fire — or in this case, the fire that is the COVID-19 pandemic, which once shuttered the physical outlets of its mother company’s highly successful franchising business, Siomai King. But even as the pandemic brought the world to a near standstill, business partners Jonathan So and Carlito Macadangdang soldiered on.
Armed with their IT background and guided by sound business acumen, the two migrated their ventures online. They even expanded it to include products that gained popularity in the new normal such as CopperMask, Calvit C and many more.
And as the demand for online delivery services skyrocketed within the group, Cloud Panda Ph, an IT development firm and sister company of Siomai King, CopperMask and JC, created its own delivery and logistics app to help its army of online sellers fulfill their orders.
But why stop there? Eventually So and Macadangdang decided to further develop toktok into an actual enterprise that would not only fill the gap in the delivery service market, but also provide an income-generating opportunity to those who were affected by the crisis.
On Dec.08, 2020, toktok was launched in Metro Manila. It debuted nationwide three months later.
Eventually, its fleet of 100 riders grew to thousands. Last April, it started a partnership with SM Malls and eventually with Robinsons Malls, and now Mega Q Mart for its Pabili Service. It also added a four-wheel delivery service that includes sedans, vans and trucks in its options. The rest, as they say, is history.
Competitive and Filipino-made
For Macadangdang and So, toktok’s success stems from a variety of factors.
One, of course, is pricing. “Our rates are very competitive,” says Macadangdang, who is also the company’s VP and CFO. “There are no hidden charges. No matter what time you send your package, there’s an applicable flat rate. This has helped the app climb the charts as one of the most downloaded in Google Play and the App Store.”
So, president and CEO of toktok, adds that the fact that it is an app developed by a team of Filipino software engineers and designers also contributed to its success. “We are proud to bring a technology that is developed, conceptualized and launched by Filipinos, especially in a field that has been dominated by foreign players for so long,” he says.
The two also credit a unique business model, which makes it possible for anybody to earn extra, as a key element in toktok’s ascent. One can be an operator and manage his or her own fleet of riders to earn seven percent of the delivery fee. An online franchisee, on the other hand, can earn three percent of the delivery fee each time his or her ID Number is used for the booking.
What’s next?
Looking at the numbers — and the fact that it was able to launch an eponymous online shopping platform called toktokmall just six months after its launch — the future does seem rosy for toktok. But is it rosy enough for an IPO offering?
“Every businessman probably dreams of being publicly listed. And, frankly, we’re not any different. However, we are focusing on growing toktok first and really perfecting the app. And once we achieve that, and if the Lord gives us the perfect time for it…” says So, trailing coyly away from the question with a smile.
“The goal is to really make the app an integral part of the Filipino’s daily life. If the opportunity comes for us to grow in that [IPO offering] direction, then we’ll have to be more prepared. As my partner and I always say, we are always open for growth,” adds Macadangdang.
What is more likely though is having TNVS and ride hailing services under the toktok brand. According to So, the company has undertaken steps to expand their services in this direction. “We’re interested. As we’ve previously mentioned, this playing field is full of foreign companies. While they’re the only ones there, we will always try our best to bring the Filipino to the fore,” concludes So.
