A Lazada loyalty program for Singapore shoppers looks set to be expanded to other Asian markets.
Alibaba-owned Lazada has teamed up with Netflix and Uber Technologies – the first time the companies have jointly created an online rewards program, according to Lazada CEO Maximilian Bittner.
The program is aimed at consumers who primarily go online for shopping, entertainment, transportation and food delivery.
Alibaba acquired a controlling stake in Singapore-based Lazada for US$1 billion last year. The “LiveUp” program links their online services, from Netflix and UberEats to grocer RedMart and Taobao marketplace.
Consumers pay S$28 (US$20) a year for such benefits as six months of Netflix streaming, discounts on Uber rides and free delivery on Lazada or Taobao purchases. A mobile app will be rolled out in the second half of the year.
“Singapore is the market on the cutting edge of validating what we think consumers might want, so we will focus on Singapore first,” says Bittner, who expects to add more partners.
E-commerce in Singapore, which accounted for 0.9 per cent of total retail there in 2003, has grown from 2.4 per cent in 2013 to 4.8 per cent last year, according to Euromonitor data.
Bittner and RedMart co-founder Vikram Rupani hatched the loyalty program over breakfast on Christmas Eve before approaching Netflix and Uber. “Their decision to do it was very fast because they have the same goal,” says Bittner.
Uber, which entered Singapore four years ago, will offer members benefits including free rides and promotions. “This is just the beginning,” says Uber Singapore GM Warren Tseng.