Today, marks a turning point for Ula. After much deliberation spanning a few months, we have decided to transition out of Ula’s inventory-led FMCG distribution business. This transformation will enable us to redirect our efforts towards ventures that scale better in today’s environment by leveraging technology, have high margins and greater capital efficiency.
We embarked on Ula’s journey with a dream — to transform B2B commerce. As the world grappled with Covid’s impact, we created a comprehensive distribution platform to deliver daily needs items when other providers were erratic or unavailable. We provided reliable delivery with a wide selection and great prices to the smallest of Indonesian retailers. Servicing the neighbourhood retailers presented an opportunity to expand into the core of neighbourhood commerce.
Our efforts bore fruit initially, even amid the challenges brought by the pandemic as Ula’s FMCG distribution business became a well-regarded name among retailers, suppliers and investors alike. But like many businesses, we’ve had to recalibrate our focus towards long-term economic sustainability. The scale and complexity of an inventory-led distribution model requires a level of investment that has proved challenging especially amidst a sluggish digital economy.
This shift isn’t without its pains. A large number of our team members, who’ve given their all to this project, will be affected. This hurts us the most. To those impacted, this isn’t a critique of your hard work or your value. You’ve been more than employees; you’ve been co-builders and friends. To reaffirm our commitment in ensuring a seamless transition, here’s how we’ll be supporting you:
- Severance: Provide fair severance compliant with respective local legal requirements.
- Career Support: CV guidance and leveraging Ula’s network to help find your next step.
- Immigration Support: Immigration aid for visa holders.
Individual 1-1 conversations will be scheduled to go over these details.
As we move forward, we are invigorated by the prospect of exploring new, scalable avenues in tune with the realities of today. We see this not as an end, but as a pause—a chance to take the lessons learned and apply them to a brighter, more sustainable future.
Thank you for being part of this journey. We will be fortunate to get the opportunity to be colleagues again, but in the meantime, we look forward to working with you to navigate this phase together successfully.
Warm regards,
Alan, Derry, Nipun, and Riky
For Media Queries:
W Communications on behalf of Ula
Kenneth Chew