In 2024, momo' s warehouse shipped over 49.13 million parcels. We aim for "low-carbon delivery" by focusing on both a "green fleet" and "shortening mileage", promoting diverse green logistics initiatives. This approach reduces the carbon footprint of logistics transportation and implements green energy transportation solutions to enhance the efficiency of fleet delivery, thus reducing carbon emissions for the last mile.
Green Fleet
To promote green and sustainable logistics, momo has been pushing ahead with the green fleet project since 2019 (hereinafter referred to as the base year). In addition to purchasing energy-efficient trucks and scooters, we introduced three-wheeled commercial electric scooters to replace fuel vehicles for deliveries by the end of 2022. We also expanded the use of electric scooters to stations in central and southern Taiwan, increasing the number from 4 to 17 stations. Moreover, we actively installed related hardware and software and continued to increase the proportion of electric vehicles for shipment. By 2024, through the green fleet project, the fleet's total distribution capacity as a percentage of momo' s warehouse shipments has climbed to 29.7%. Compared to the base year, this also reduced Scope 1 carbon emissions from the company' s own fuel- powered fleet. We aim to achieve the interim goal of electric scooters accounting for 50% of distribution by 2025, gradually realizing our vision of green logistics.
• Short-chain Deployment
To balance efficiency and environmental sustainability in product deliveries, momo follows a "short chain deployment" strategy by establishing a Southern Distribution Center to optimize its overall logistics network. This enables momo to allocate resources more efficiently while continuously expanding diverse pickup channels to reduce door-to-door delivery emissions. In recent years, momo has leveraged technology to optimize inventory allocation, reducing the need for split shipments and enabling more efficient route planning to shorten delivery distances.
• Consolidated Delivery for Shipment to Reduce the Need for Split Shipments
momo offers a wide variety of products. If a consumer orders multiple items in a single order, the items may be stored in different warehouses, resulting in the need for split shipments for that order. We continue to optimize our inventory distribution strategy, and in 2022, we introduced the "consolidated delivery" feature for the first time, consolidating consumers' orders from multiple warehouses via existing warehouse-to-warehouse transfer trips to the consolidation warehouse for combined shipments. This will not only reduce the inconvenience of customers receiving multiple packages for the same order, but will improve the loading rate of cartons and cut down on the use of consumables, and also reduce the number of round trips and transportation mileage. In 2023, we implemented the "momo green life membership" program, allowing members to proactively choose whether to opt for consolidated delivery function based on each order's requirements. We also incentivized consumers with mo coins to encourage them to choose this feature, thus avoiding additional carbon emissions generated by split shipments. In 2024, through consolidated delivery, reduced transportation-related carbon emissions by an average of 7.6 grams per package.
• Strengthening Short-Chain Deployment Layout to Enhance Delivery Efficiency and Sustainability
To create the best shopping experience in the "neighborhood", momo is actively expanding its logistics network. After consumers make online purchases, products are quickly shipped from nearby warehouses. By partnering with delivery service providers across Taiwan and utilizing momo' s own green fleet, combined with AI-driven route optimization, momo employs a dual approach to shorten the distance between consumers and products, thereby reducing carbon emissions. Furthermore, to provide consumers across Taiwan with service levels comparable to those in northern metropolitan areas, the Southern Distribution Center officially commenced operations in 2024. Serving as a logistics hub for the southern region, it integrates warehousing, sorting, and delivery functions to strengthen regional distribution capacity. The establishment of the Southern Distribution Center has optimized the overall logistics network, enabling more efficient resource allocation. This is also one of the main reasons behind momo' s adjustment of its satellite warehouse layout. Through a more streamlined logistics network, the number of satellite warehouses has been reduced without compromising delivery efficiency or increasing logistics-related carbon emissions, thus achieving energy saving and carbon reduction goals. The Southern Distribution Center incorporates multiple smart logistics technologies, including automated warehousing equipment and intelligent picking systems, significantly improving logistics efficiency. Following the inauguration of the Southern Distribution Center, momo is advancing the Central Distribution Center project, which was initiated in 2021. Plans are underway to invest in equipment and promote a BOO model, with an expected official launch in 2027.
• Increase Diverse Options for In-Store Pickup Services to Reduce Door-to-door Delivery
Consumers can choose home delivery or in-store pickup from a convenience store once they make a purchase on the momo platform. In addition to providing consumers with more diverse pick-up options, momo aims for packages, destined to different consumers, to be consolidated and delivered to a single store through the existing convenience store logistics system. Reducing the mileage for home delivery will help reduce carbon emissions. As of 2024, the total number of pick-up points partnered with momo including the four major convenience store chains, Taiwan Mobile stores, and self-service lockers (iBox) has reached 16,600.
The number of convenience store pick-ups has continued to grow, with the number near 5.941 million pieces in 2024 and growing by 3.8% compared to 2023 over the same period. The average distance for last-mile delivery of packages was 0.7 km. The convenience store channel as a whole achieved savings of up to 4.159 million kilometers. Furthermore, we have collaborated with t-cat for expedited in-store delivery. Items shipped from momo's central and southern warehouses to convenience stores can now be directly delivered by t-cat to the designated pickup points, reducing the need for shipments to the northern warehouses for consolidation.
In 2023, we also introduced convenience store return services, allowing consumers to freely choose the nearest convenience store for returning items. This initiative enables the collection of return items when delivering goods to convenience stores, reducing the need for individual pickups for returns.
• Collaborate with Suppliers to Promote Node Removal
Since 2018, momo has been promoting a "node removal" transportation model, inviting various product suppliers to collaboratively innovate operations. Through measures such as direct factory delivery and cross-docking, momo optimizes the use of third-party logistics and warehouse resources to reduce transportation mileage and delivery costs for brand owners, while significantly shortening delivery lead times. Under this model, goods arriving at Taiwan' s ports are transported to the nearest momo warehouse. Based on the demand volumes of the northern, central, and southern warehouses, delivery routes are shortened to reduce vehicle carbon emissions, lower logistics costs, increase intangible warehouse capacity, and enhance the collaboration efficiency among third-party teams. As of 2024, 22 suppliers and 40 brands have joined the nodal removal initiative. The volume of goods continues to grow, increasing approximately 52% compared to 2023, resulting in a reduction of 143.26 metric tons of carbon emissions.
