Giants encircle and suppress extreme rabbits: how far is it from Pinduoduo?

The double 11 campaign has not yet officially started, and the express arena has been raging. Recently, a number of media reports stated that Yunda officially issued a notice, requiring its affiliated companies (including contract areas) not to join the Extreme Rabbit Network and contract areas for any reason or in any form; the two ends of the contract shall not use any reason or in any form. Acting extremely rabbit express business.

Author|Editor by Zhang Chao|An Xin

Giants encircle and suppress extreme rabbits: how far is it from Pinduoduo? 1

Yunda is not the first company to drop the bomb. As early as July and September this year, Yuantong and Shentong were also exposed to “blocking” Polar Rabbit. So far, the three big mountains in the express industry-“two links and one reach” have formed an encirclement and suppression of polar rabbits.

Yunda, Yuantong, Shentong and Jitu did not respond directly to the matter, but All Weather Technology learned from multiple franchisees that “blocking” is true.

Jitu was blocked by three express delivery giants, which also means that the express recruits in the Chinese market have already attracted the attention of their peers.

All-weather Technology learned exclusively from Jitu insiders that Jitu has completed 100% coverage of provinces and cities across the country. As of October this year, the number of national transportation trunks has exceeded 1,500, and the number of trunk transportation vehicles has exceeded 2,000. At present, the number of domestic outlets has also exceeded 10,000; in terms of orders, the total daily ticket volume reached 10 million in late September this year.

What is the concept of 10 million tickets per day? If calculated on the basis of 30 days a month, the single monthly ticket volume can reach 300 million.

Public data shows that in September of this year, Yunda completed 1.463 billion business volume; Yuantong followed by 1.217 billion; Shentong’s figure was 860 million.

This means that although Jitu’s single quantity is still a certain distance from Yunda and Yuantong, it has exceeded 1/3 of Shentong.

The above-mentioned insiders also revealed to All Weather Technology that this year’s Double 11, Extreme Rabbit’s mission is to have 15 million daily orders. “It is hoped that through the Double 11 smoothly, impulse is not a goal, but to work hard on service quality and timeliness.”

Regarding these two news, All Weather Technology sought confirmation from Jitu, and the other party said: “No comment.”

The rivers and lakes are sinister, and the express water is deep. How much opportunity does Polar Rabbit have? How much challenge does it have to go through to catch up with the domestic express giants?

“Two links and one connection” can’t seal Polar Rabbit?

In the domestic express industry, Jitu has always been regarded as a “spoiler”. Although acting low-key, but menacing.

According to official website information, Gitu Express first started in Jakarta, Indonesia in August 2015, and then started business in Vietnam, Malaysia, the Philippines, Thailand, Singapore, Cambodia and other countries, serving nearly 2 billion people. It is a technologically innovative logistics service. Quotient.

In 2019, this company changed its direction and started to enter the Chinese market. It was not until September 2019 that the main operating entity of Jitu Express-“Shanghai Jitu Supply Chain Co., Ltd.” was officially registered and established, and the legal representative of the company was Yang Lulu. However, in January 2020, the company made changes to a number of important business information.

According to the company’s data, the current suspected actual controller of Jitu is named Fan Suzhou, who indirectly holds 99% of Jitu’s shares through “Shanghai Yishang Industrial Co., Ltd.” and the other shareholder of Jitu is Wu Rongmei.

Giants encircle and suppress extreme rabbits: how far is it from Pinduoduo? 2

Polar Rabbit Equity Penetration Chart (Source: Qichacha)

It is worth noting that in April this year, Jitu completed an industrial and commercial change, and its name was changed from “Shanghai Longbang Express Co., Ltd.” to “Shanghai Jitu Express Co., Ltd.”.

According to the public information of the State Post Bureau’s license and annual report information query platform, Longbang Express holds a national postal license and operates across provinces, autonomous regions, and municipalities.

This means that in the early days, Jitu successfully “borrowed the ship” through the major shareholder holding shares in Longbang Express, and obtained the express delivery license in a short time.

After everything was ready, Jitu officially started the logistics network laying work in March this year. Through the “direct management + franchise” model, Jitu has established self-operated outlets in the core area to ensure service quality; other regions use franchised outlets to expand network coverage.

In order to quickly open the Chinese market, Jitu’s big killer is-“low price”. According to incomplete statistics, in the early days, Jitu can be 1-1.5 yuan lower than the “Tongda Department” per vote; and the person in charge of Jitu said to the public that “be prepared to lose money for two years.”

Such wild play has caused many express companies in the industry to complain. On the one hand, they criticized Jitu for “disturbing the market”; on the other hand, in order to ensure the order quantity, they had to join the “price war”.

But this is not the most important reason for the “blocking” of Jitu. After all, the “price war” is not uncommon today; “Chunwang” is the last straw that overwhelms the psychological defense line of “two links and one reach”.

As we all know, the “Tongda System” has always adopted the mode of franchising of outlets, and outlets earn income by collecting and dispatching pieces. In order to maximize the benefits, some outlets will take over the business of multiple express companies; and the delivery fee to the outlets by Jitu has obvious advantages, which attracts a large number of “Tongda” franchisees to take delivery for them.

Some people also revealed to the media that “Tongda” franchisees will even use Tongda resources to transport and transfer to help Jitu complete its business. This gave rise to the term “cunwang” and the later “blocking order.”

But Jitu has different opinions on this, and they are even more calm about “blocking”.

Huang Wei, a staff member of Jitu, told All Weather Technology, “Yunda banned us, but said that his franchisees would not be allowed to join us. But if an outlet wants to join Jitu, his relatives, friends, brothers and sisters can register. A company.”

In other words, if a branch wants to join the “Tongda Department” and also wants to join Jitu, there is still a way in actual operation.

But Huang Wei believes that this is not a “crush network”, but more like a “end co-match.” She emphasized that when Jitu recruits franchisees, it requires independent facades, dispatch personnel and transportation vehicles, and will not share it with the “Tongda Department”.

As for the so-called “Cengwang”, she thinks it is more likely that Yunda’s business outlet is at No. 100 on a certain road, and Jitu is next to it, at No. 102 or 103; Yunda’s boss is the brother of Jitu’s boss, two The shop is managed by one person.

According to Huang Wei’s knowledge, currently in Shanghai, more than one-third of the franchise outlets of Jitu are from peers, and about one-fifth are from the “three links and one reach”; as of now, no peer franchisees have left the network News.

All-weather Technology also learned from Zhang Tianchu, a rookie station staff in a certain place in Hubei, that at present, the neighboring “Tongda Department” outlets have received notices that they cannot join Jitu. Under normal circumstances, they will not receive Jitu express; he himself can. Help nearby residents receive and send extremely rabbit express.

“I don’t have a face-to-face order from Jitu, but I can help users deliver to Jitu.” Zhang Tian emphasized that he has no cooperative relationship with Jitu, no franchise, no agreement, “but if the surrounding residents ask me to help send , I can’t refuse either.”

Under normal circumstances, when there are only three or two express items, Zhang Tian will not charge any fees, but if there are more express items, he will charge a moderate amount to Jitu.

According to Yang Daqing, an expert in the logistics industry, the “two links and one link” approach should not be a conclusive conclusion. If all the rabbits are operating on the Tongda network, the Tongda system may be said to be blocked. After the Tongda system prohibits the terminal outlets from accepting Gigatu express, Gigatu can also build its own network.

Regarding the “end-to-end co-matching” model mentioned by Huang Wei, Yang Daqing believes that this is a model of resource sharing and business mutual assistance at the end express outlets.

“It can solve the situation in some rural or remote areas where the business volume is insufficient but distribution outlets are needed, and resources are intensive without repeated investment and construction.” However, Yang Daqing feels that the co-allocation model is mainly suitable for rural or central and western regions with insufficient logistics resources.

Extreme Rabbit Running

Choosing to enter the second half of the fierce battle in China’s express industry is evident in the courage of the rabbit.

For survival in the cracks, Jitu should have expected it. Even if it is surrounded everywhere today, it still seems to be determined to win the Chinese market, with the goal directed at the Top 3.

For an express company, the core value is still the logistics network. Jitu, who knows this well, is constantly recruiting more franchisees and wants to expand its franchise network.

According to Huang Wei’s description, in the early days, Extreme Rabbit used the direct mode to quickly start the network; later, in order to expand and refine the network, it started the franchise mode.

All-weather Technology has exclusively learned that before September this year, the franchise fee for Extreme Rabbit’s Shanghai area was as low as 27,400 yuan (including initial fee of 10,000 yuan, security deposit of 10,000 yuan, system usage fee of 2,400 yuan, and decoration security deposit of 5,000 yuan); after September, In order to improve the end-of-service quality, the Shanghai area raised the franchise standard to 57,400, with the main increase in the deposit.

Even so, compared to other courier companies, which often cost hundreds of thousands to hundreds of thousands of franchise, the threshold for joining Extreme Rabbit is still low.

Moreover, because the logistics network of the “Tongda Department” has matured, at present, more members can only be joined through transfer, and there will be certain differences in the franchise fees of each region and each branch; Jitu can choose to join directly or directly to join. In this form, the cost is relatively transparent and uniform.

Huang Wei revealed to All Weather Technology that there are currently 50-70 directly-operated outlets in Shanghai. Because some of the outlets are in the process of direct-operating to join, the data may not be very accurate; there are more than 10,000 outlets nationwide. “We plan to expand to about 330 outlets in Shanghai by the first half of next year (2021).” She said.

In addition to implementing preferential subsidy policies on the side of franchisees, Jitu also applies this strategy to multiple links in the express transportation chain. It is reported that in order to recruit more couriers, the price of delivery will be slightly higher than that of the “Tongda system.”

Taking the area near Wujiaochang in Yangpu, Shanghai as an example, the salary of Jitu Express staff is divided into basic salary + dispatch fee, and each dispatch fee plus basic salary can reach 1.9 yuan; while Yuantong and Yunda are about 1.5 yuan per order.

Li Liang, a franchisee of a branch of Extreme Rabbit in Shanghai, revealed to All Weather Technology that his outlet is about 100 square meters, and the current daily order volume can reach 2000 orders. Therefore, a total of more than 10 couriers are recruited. The daily order quantity is 150-180 orders.

“Now, the salary of courier employees is 8,000 yuan (after tax) upwards every month, and they can get tens of thousands of yuan if they work well.” Li Liang said, couriers are paid by piece rate, and the amount of delivery is high, and the salary is natural. It rose up.

It is worth noting that Li Liang has another identity. He has been a franchisee of the “Tongda Series”. As the income has been mediocre, this year, on the recommendation of friends in the industry, he joined Extreme Rabbit. After half a year of operation, he said, “No money was lost.”

After only one year of establishment, Jitu has tore a hole in the red sea of ​​China’s express industry and reached cooperation with a large number of franchisees. At present, it seems that the effect of the game is remarkable.

Some public data shows that the average daily business volume of the entire network of Jitu Express exceeded 1 million orders in May, and the daily order volume of the entire network exceeded 5 million orders in July, and it stabilized at 8 million orders in September. On Double Eleven this year, the daily orders will reach 15 million orders.

The strong development speed of Extreme Rabbit naturally attracted the attention of industry giants. Especially after Jitu joined Pinduoduo, its development space has been given imagination. After all, Pinduoduo’s number of express packages in 2019 is close to 1/3 of the entire express industry.

The war is coming, food and grass will go first. In express delivery, a very money-burning industry, especially after 2019, the rise of “price wars” has put a greater test on the capital reserve capacity of express companies.

In order to quickly start the network, continue to subsidize franchisees, and resist subsequent challenges, Extreme Rabbit needs to have sufficient “ammunition.”

All-weather Technology learned from people close to Jitu that Jitu initially raised US$20 million and was invested by the largest domestic logistics company in Indonesia. In this regard, All Weather Technology sought confirmation from Jitu, and as of press time, no response has been received.

In September of this year, it was revealed that a new round of financing is in preparation, with a scale of 10 billion yuan. Some analysts believe that this round of financing is also preparing for the upcoming Double Eleven.

However, under the encirclement and suppression of the “two links and one reach”, the first double 11 exam of the rabbit is destined to be under pressure.

Dilemma and Opportunity of Extreme Rabbit

Behind logistics is business flow. It’s not the most dangerous thing for Jitu to be “blocked” by giants. For a courier company, no e-commerce order is the most deadly.

From the day it was paid attention to by the industry, Jitu has been deeply branded with the “Pinduoduo Series” mark. Although public information shows that the two have nothing to do with each other at the equity level, behind the founder of Jitu Li Jie and the founder of Pinduoduo, Huang Zheng, is connected a vital figure-the OPPO behind-the-scenes boss Duan Yongping.

The two companies have never publicly explained this positively. Coupled with constant market rumors, the relationship between Jitu and Pinduoduo has become even more confusing.

Perhaps because of this confusing relationship, Taobao and Tmall have yet to connect to Extreme Rabbit. Jitu’s internal employee Huang Wei also confirmed to All-weather Technology that at present, Jitu has access to dozens of large and small e-commerce platforms, including Pinduoduo, Douyin, Kuaishou, etc., but it has not yet been docked with Taobao and Tmall.

Obvious differences can also be seen from the delivery volume of couriers. All-weather Technology has learned that in the area near Wujiaochang in Yangpu, Shanghai, the number of orders sent by Super Rabbit couriers is about 150 orders a day; in the “Tongda System” that has an equity relationship with Ali, YTO couriers can reach twice the number of Super Rabbit couriers. The average daily delivery volume, Yunda courier delivery volume is about 220; and in terms of coverage area, extremely rabbit courier is also slightly larger than the latter two.

Coupled with the “blocking” of “two links and one reach”, it is equivalent to adding a lot of pressure to the polar rabbit at the front and end.

“Although the current challenge is pressure from traditional express giants, the greater pressure lies in whether we can establish sustainable core competitiveness as soon as possible.” Logistics industry expert Yang Daqing pointed out that at present, Jitu is still in the early stage of development and price competition is necessary. But he emphasized that “price-sensitive consumer groups lack consumer loyalty and cannot become the cornerstone of sustainable development of enterprises. To seek long-term development, enterprises need to engage in value competition, not just price competition.”

“Price war” is not a long-term solution for anyone. If Extreme Rabbit wants to occupy a place in the express arena for a long time, and even compete for Top 3, it will ultimately compete with soft power-service and technology.

Judging from the current development, Jitu’s service is still somewhat unsatisfactory.

According to relevant data from the State Post Bureau, in September of this year, the average complaint rate of express companies (one million express mail business volume) was 1.81, while Extreme Rabbit Express reached 7.26; it reflects the “Comprehensive Index of Complaint Handling Work”, an indicator that reflects the handling of corporate complaints. Among them, Extreme Rabbit Express scored 85.75, which was lower than the average (92.26) and ranked fourth from the bottom of the 22 major express companies.

Giants encircle and suppress extreme rabbits: how far is it from Pinduoduo? 3

Statistics on the success of major express companies in September (picture source: State Post Bureau)

Extreme Rabbit itself seems to be aware of the seriousness of this problem, and has introduced corresponding rewards and punishments in an attempt to improve the quality of service.

“The headquarters gave us instructions here. The overall direction is to ensure that our region must do a good job of quality.” According to Huang Wei, as the volume of express orders reaches a certain volume, Jitu has strengthened its control of service quality. Instead of rewards and punishments through points.

For example, if the daily order receipt volume reaches 1200 and 50% is completed, you can get 10 points; the customer complaint rate is less than 0.3 to get 25 points; on the contrary, postal complaints, false receipts, abnormal outlets and other issues are all deducted points. , The points will be reduced according to the ticket volume. Finally, rewards and punishments are based on the total score.

Giants encircle and suppress extreme rabbits: how far is it from Pinduoduo? 4

It can be clearly seen from the above table that the deduction items are calculated based on the number of votes. Once there are more problems and customer satisfaction is not good, basically one day is equivalent to nothing.

In this year’s Double 11, in order to ensure the quality of service, Jitu also proposed to control the single quantity. On October 15th, Jitu’s Shanghai area has launched a “peak response” strategy, conducted a thorough investigation of the number of outlets, personnel, and capacity, and made corresponding preparations.

Under normal circumstances, the average daily order of Polar Rabbit in Shanghai is between 350,000 and 400,000 orders. This time, Double 11 is expected to be around 500,000 orders. “Received an order from the headquarters to limit the amount a little bit, to build the delivery quality of the terminal outlets.” Huang Wei revealed.

Service is obviously a protracted battle. Especially in the new stage of the express market’s transformation and development to digital intelligence, how to balance the relationship between technology and service, take into account the synergy between upstream and downstream, establish overall cost optimization and the efficiency improvement brought by synergy, is a big deal for Jitu The test.

In the context of the rapid rise of live broadcast e-commerce and social group buying tearing the bipolar pattern of Ali and JD, Yang Daqing believes that there is still room for development of Polar Rabbit, because the current stage of social e-commerce and live streaming with goods are still low value-added products Mainly, there is a demand for cheap express delivery.

“But to see that Taobao and Jingdong traditional e-commerce have also entered the era of live e-commerce and social e-commerce, the window period for the rise of Jitu Express will not be very long.” Yang Daqing pointed out that Jitu needs to grow rapidly in a limited time.

There is an unconfirmed claim that if Jitu develops well, Pinduoduo will admit their relationship, otherwise they will not. If this is the case, Jitu needs to prove itself with the speed of development.

(At the request of interviewees, Huang Wei, Zhang Tian, ​​and Li Liang in the article are all pseudonyms)