Hospitality & Tourism Transportation & Logistics

Confluences Sign Strategic Business Development Agreement With LOCA

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Cambodian-based Confluences has announced a strategic business development agreement with Laos super app and ride-hailing firm LOCA for them to enter the Cambodian market. 

The MoU between the two firms was signed by Souliyo Vongdala and Phonepasong Mixab, (LOCA’s CEOs and Co-Founders) and Soreasmey Ke Bin, Confluences’ CEO. Soreasmey said online: "This strategic partnership will enable Confluences to guide LOCA on their first steps in Cambodia. The Kingdom is LOCA’s first market outside of Laos, and the start of the app's regional expansion." 

LOCA Laos is the largest 24-hour ride-hailing and taxi service in Laos and the partnership will assist LOCA in establishing a footprint in the Kingdom "with some of its most innovative and successful products and services, notably their electric vehicle taxi fleet, EV {electric Vehicle} charging station locations, and LOCA Pay payment platform." ​ LOCA has over 700 cars and 100,000 users in Laos and was the first Laotian startup to be listed on Forbes Asia 100 to Watch. The app has since become a super app in the Southeast Asian country offering a variety of lifestyle features

Confluences Sign Strategic Business Development Agreement LOCA
Photo Credit: Confluences - Mr. Soreasmey Ke Bin – CEO, Confluences (Left) with Mr. Souliyo Vongdala, CEO and Mrs. Phonepasong Mixab, Co-CEO (right) – Loca

LOCA - Enters Cambodian Market

Souliyo Vongdala and Phonepasong Mixab said about the expansion into Cambodia: "Cambodia is a country that particularly welcomes eco-friendly, sustainable and innovative products and services. With the Government supporting such developments, a surging urban population with growing revenues and increasing green consciousness, a significant mobile penetration, and the advent of a cashless society, the Khmer market presents tremendous opportunities."

"Expanding the market to Cambodia is definitely about winning customers’ hearts. We believe this partnership will set a solid footprint for us in Cambodia, and even further afield," Phonepasong Mixab, LOCA’s Co-CEO & Co-Founder added.

Confluence is bringing the experience of its Market Access and Ventures teams to help with the introduction of LOCA’s activities to the relevant regulatory bodies in the Kingdom. Dara N. Van, Confluences’ Business Development & MarCom Manager said "LOCA’s value proposition is particularly in line with our goal of supporting the development of sustainable projects in our country and further afield, and we are very confident that LOCA's offerings will be well-received in Cambodia."

Ride-Hailing App Cambodia

Profitence's recently released "E-commerce In Cambodia" report indicated that in the Ride-hailing/Transportation sector, there was a decline in usage in 2022 outside of major cities in Cambodia, while there was also a growing trend for companies to expand into super apps.

 Cambodia was also believed to have 18 million internet users in 2022 which was a rise compared to 8 million in 2016. Cashless payment adoption in Cambodia had also grown from 40% in 2020 to 68% in 2021 supporting the shift to e-commerce in the Kingdom with the revenue from the ride-hailing and taxi segment in Cambodia projected to have reached USD 21.37M million in 2022.

 Some of the key players in the market are Nham24, Grab, TADA, LM Car, and PassApp. 

Confluences also recently teamed up with New York-based tourism development company Trove Tourism Development Advisors and presented the Ministry of Tourism of Cambodia with a Sangkat-Level urban tourism plan, and is working on the Immersive Angkor Museum which was delayed due to the pandemic.