Lalamove Survey Reveals Cautious Sentiment Among SMEs, with 43% Citing High Logistics Costs and Operational Pressures into 2026
Cost efficiency and flexible delivery solutions would be what businesses need to manage expenses
Singapore, 8 December 2025 – Lalamove, the leading on-demand delivery platform, has revealed from its latest SME survey, showing that high logistics costs remain one of the high concerns for local businesses. More than 43% of surveyed SMEs indicated that rising logistics expenses are top of mind for the coming year.
The survey also revealed that expectations for delivery volumes in 2026 are modest. 36% of SMEs believe their delivery volume will remain unchanged next year, while 27% expect a slight increase of up to 20%. Only 10% anticipate a stronger rise of more than 20%, reflecting a generally cautious outlook on business growth.
Conducted between September and November with more than 900 SME respondents, the survey found mixed views on Singapore’s overall business environment in the year ahead. 28% of SMEs said they feel cautious, 25% expressed uncertainty or pessimism, 27% reported feeling optimistic about the outlook, while the remaining 20% indicated no change in sentiment.
Affordable Pricing and Safe Delivery are Top Partnership Priorities for SMEs As operating costs continue to rise across sectors, SMEs are becoming increasingly selective when choosing logistics partners. When respondents were asked about the most important factors in selecting an on-demand delivery platform, 55% named affordable pricing as their top priority. Another 50% said that safe delivery with no damage is the most important consideration. This was followed by 38% who identified delivery speed as their top deciding factor.
These findings suggest that SMEs are prioritising practical and cost-efficient delivery options, reflecting the broader economic sentiment of cautious spending and the need to manage business expenses more tightly.
SMEs Grapple with Cost Pressures and Higher Customer Expectations The survey highlighted several pressing challenges that SMEs expect to face in the next 12 months. 43% of respondents pointed to high logistics costs, 42% cited rising rental expenses, and 38% expressed concern over lower consumer spending.
At the same time, SMEs are also experiencing greater pressure to meet rising customer expectations. Over 50% of the respondents shared that their customers are now demanding faster delivery compared to last year, adding another layer of operational pressure on businesses.
These combined challenges underscore the need for logistics solutions that offer affordability, reliability and speed, three factors that SMEs increasingly see as essential in their day-to-day operations.
Diverse Delivery Modes Needed to Serve Market Demands When asked about the types of vehicles they typically rely on for deliveries, SMEs showed a balanced mix of preferences. 36% said they frequently use motorcycles, while 32% reported using cars. Another 32% rely on vans and lorries. This distribution highlights the diverse nature of SME demand, showing that Singapore businesses depend on delivery solutions ranging from small item transport to larger, bulkier goods fulfillment.
Alex Lin, Managing Director of Lalamove Singapore, said: “Our survey findings reflect both the resilience and the challenges faced by SMEs today. Businesses are under pressure from rising costs while meeting increasing customer expectations for speed and reliability. At Lalamove, we remain committed to supporting them with cost effective, flexible logistics solutions that help them stay agile and competitive. By continuously improving our services and staying close to the needs of our users, we aim to be a trusted partner for SMEs across every stage of their growth.
Supporting SME Growth Through Peak Season As Singapore moves into the festive period, many SMEs expect logistics demand to rise, particularly in sectors such as F&B, retail, events and gifting. Lalamove’s Corporate Solutions and flexible delivery options are designed to support businesses during these peak periods, helping them manage increased customer traffic while maintaining cost control, efficiency and reliable fulfilment.
ABOUT LALAMOVE
Founded in Hong Kong in 2013, Lalamove is an on-demand delivery platform born with a mission
to empower communities by making delivery fast, simple, and affordable. At the click of a button,
individuals, small businesses, and corporations can access a wide fleet of delivery vehicles
operated by professional driver partners.
Powered by technology, we seamlessly connect people, vehicles, freight and roads, moving things that matter and bringing benefits to local communities in 16 markets across Asia, Latin America and EMEA.