You may receive multiple couriers delivered by different couriers in a day. If you hand it over to the same company for delivery, the efficiency will be greatly improved, and many people have seen this market opportunity.
Recently, Xie Qin, CEO of Renren Express, said in an exclusive interview with Interface News reporters that Renren Express has cooperated with express company outlets to deliver parcels, covering nearly 70 business districts across the country (Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, Wuhan, Tianjin and Chengdu).
He said that he did not intend to cover the entire network. The "business district" he mentioned refers to the 3-5-kilometer core business district of the city, such as the People's Square business district in Shanghai. Within the business district, express delivery website points will transfer the distribution fee issued by the headquarters to everyone.
To ensure order acceptance, each business district is bound to a certain number of "free express delivery persons". If no one accepts the order, it will be pushed to 5% of the "optimized express delivery persons" who must accept the order. Renren Express and outlets agreed to have two sessions a day: 8:00 a.m. and 2:00 p.m., delivered within five hours.
The delivery cost in urban areas is getting higher and higher. For express delivery outlets, outsourcing delivery is a way to turn losses into profits. In February this year, a "strike wave" was launched at express delivery outlets, which allowed more and more same-city distribution companies to see the " last mile " market.
Suppose that a branch can deliver 2,000 orders per day, and requires hiring ten couriers and raising ten cars, and four outlets in the same area are four times more likely. If express delivery is integrated into one, the cost will be greatly reduced. Among them, express delivery vehicles can be rented to free couriers, and some of the fired couriers also flow into everyone. According to this logic, once the same-city distribution company participates in the deployment of the express delivery outlet, the people and cars at the outlet will flow into the same-city distribution company.
Xie Qin also revealed that the current business volume of this part has reached 200,000 orders, and everyone takes 20% of the freight fee. Currently, multiple outlets have achieved profitability.
But the number of business districts is limited. Xie Qin said that this year will be a year of speed competition: "The same city distribution is only this year."
For participating players, the problem is how to coordinate the leisure time and busy time. The ideal state is: deliver express delivery in the morning and afternoon, and deliver takeaway at noon and evening.
As the first crowdsourcing logistics company, Renren Express has opened the instant logistics market. Now, this market is emerging and is being "divided".
Renren Express was mainly engaged in errands business before, and it was inevitably divided by entrants. The crisis made Xie Qin decide to go deep into the entire logistics industry chain.
Currently, there are three main orders for the same city distribution: running errands (flash delivery, UU running errands), O2O (three major takeaway platforms, vertical e-commerce), and land delivery (the collection and distribution are separated, and cannot be done by a certain express company).
Specifically in terms of categories, including flowers, cakes, night snacks , afternoon tea, personal urgent items, transfers, digital products, files, etc. Each "play" is different. The instant logistics market is being divided by multiple players with differentiated products.
Xie Qin told Interface News reporters that not all categories need to be delivered within an hour. Most of the same-city distribution market are small merchants, which are price-sensitive and can easily be cut off by low-priced competitors.
Currently, flowers, cakes, and midnight snacks account for the largest proportion in the errand platform, and afternoon tea and midnight snacks can naturally be cut away by the takeaway platform. The other three major takeaway platforms have launched errands: "In the past, one of my product managers went to Baidu Takeaway, and Baidu Takeaway immediately launched the help-buy business." Xie Qin concluded that there is no way out for simply doing errands.
For this reason, Renren Express’s errand business app has been renamed “Renren Express”, not Renren Express’s name. According to Xie Qin's idea, "Renren Express" will focus on errands business, and "Renren Express" will focus on other business lines in the entire industrial chain.
Xie Qin is not worried about the restrictions on express delivery licenses. He said that Renren Express has obtained business licenses in several major cities. Judging from the government's requirements, everyone's delivery station has fixed venues and employees, and already has the conditions to obtain a license.
Takeout order is 8 yuan per order, and express delivery order is 1.5 yuan per order.The trillion-level O2O industry has spawned a logistics and distribution market of hundreds of billions of yuan, including the same-city distribution market for landing distribution, which is becoming larger and larger. Listed express companies with a market value of tens of billions are unwilling to let go, and the three major takeaway platforms are not satisfied with only building takeaway platforms.
capital has made competition more intense. According to incomplete statistics, in the past year, the total financing of various O2O logistics platforms has exceeded US$1 billion, and good "targets" will be favored by capital and logistics giants. Recently, it is rumored in the industry that SF Express wants to acquire Baidu Takeaway, intending to enter the e-commerce market with the help of same-city distribution.
According to the latest round of financing plans, both YTO and Yunda have begun to plan their old companies to share the same city.
Take Yunda as an example and plans to invest in the construction of express distribution centers and distribution outlets, as well as purchase corresponding vehicles and information equipment in eight key cities including Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, Wuhan, Nanjing, and Suzhou , as well as build a fast urban distribution network.
Everyone realizes that same-city delivery is essentially different from traditional express delivery. High added value requires high frequency, high timeliness, fast response, and high service quality. In this regard, both YTO and Yunda use direct sales to ensure service quality and are strictly independent of the original franchise outlets.
Regarding the entry of express delivery companies, Xie Qin said that the same-city distribution business of express delivery companies is mainly O2O. According to the principle of separation of collection and delivery, it is difficult for express delivery companies to obtain orders from other express delivery companies, so the on-site distribution must be a third-party distribution company.
According to data released by State Post Bureau , in 2016, the national express delivery business revenue reached 56.31 billion yuan, a year-on-year increase of 40.5%, exceeding the growth rate of off-site business.
Due to the particularity of the logistics industry, the same-city distribution market cannot be monopolized by one or two companies, and will be very scattered on the basis of the region. But it is foreseeable that in the next two years, players from all walks of life will deploy the "same-city distribution" market through acquisitions, investments, etc., and quickly complete the division of the same-city distribution market.
