When I am reborn, I just want to be a top student
Chapter 722 Galaxy Technology's Disruptive Actions
"Tell me what you want to do?"
Wang Donglai did not immediately agree to Wa's request, but instead asked a question in return.
To be honest, Wang Donglai was genuinely worried that Wa might do something lawless in the online world.
For example, they might hack into Swiss banks and transfer money from dead accounts.
For example, hacking into a confidential unit's system to retrieve information, etc.
Although I am quite confident that Nuwa would not do that.
However, such things are always major events when they happen.
Wang Donglai was naturally also somewhat worried.
"Boss, I want to go outside and have a look around."
"Should we go out and take a look?" Wang Donglai asked, puzzled.
As soon as Wang Donglai asked the question, a sudden inspiration struck him, and he understood what Wa meant. He then asked, "Do you want a drone, a robot dog, or a self-driving car?"
"Boss, I'd like to try both."
Wa's tone was eager and excited.
Now that things have come to this point, how could Wang Donglai not understand Nuwa's meaning?
As an artificial intelligence, Wa's range of activities seems large, but in reality, it is very small.
Because of her unique life form, lacking senses of touch and taste, Wang Donglai sometimes overlooked Wa's feelings.
It wasn't until Nuwa brought it up that Wang Donglai realized what was happening.
Nuwa can observe the world through a camera and communicate with countless people in the online world.
You can also operate drones or robot dogs to do things according to your own wishes.
"It's my fault for not noticing your needs before."
"Since you've brought it up, you must have some ideas. Why don't you tell me?"
Wang Donglai said this to Nuwa.
“Boss, as long as you agree, it’s fine.” Wa’s voice rang out immediately.
Wang Donglai only pondered for a moment before agreeing to Wa's request.
With Wa's abilities, she could infiltrate most surveillance cameras on the market and turn them into her eyes in the blink of an eye.
Wa has always restrained her abilities.
"I agreed, but you still have to abide by the things I told you before," Wang Donglai reminded him.
"Don't worry, boss, I understand!"
……
Shanghai, Qingpu.
This place is also jokingly called a "courier hub," for a simple reason: nearly 60% of the national courier companies have their headquarters here, and their courier business volume accounts for half of the national courier market.
The headquarters of STO Express, YTO Express, ZTO Express, and Yunda Express are located next to each other.
As veterans in the express delivery industry, STO Express, YTO Express, ZTO Express, and Yunda Express are currently among the top tier in China in terms of scale.
Their combined market value exceeds 200 billion.
However, during this period, everyone from top to bottom at STO Express, YTO Express, ZTO Express, and Yunda Express—from the CEOs to the employees—has become somewhat restless.
Because a disruptor entered the express delivery industry.
Spark Express!
Although it is a newcomer, it is backed by the nationally renowned Galaxy Technology Group.
From the moment they entered the game, they displayed a style of doing things with their deep pockets and big resources.
poaching talent, purchasing trucks, building transit warehouses...
If that's all there is to it, it's not a big deal; at most, it just means there's one more competitor.
However, Xinghuo Express offers its employees extremely high salaries and benefits.
Five social insurances and one housing fund, commercial insurance, housing allowance, meal allowance, commissions and bonuses...
All of these things were provided to all the employees.
Yes, it's arranged for all employees of Xinhuo Express, not just a very small number of regular employees.
Xinghuo Express has no temporary workers or third-party employees; all employees are directly contracted by headquarters.
It's fair to say that this treatment caused a major upheaval in the entire express delivery industry.
However, given that Xinghuo Express had just been established and had the backing of Galaxy Technology Group, everyone held back and observed the situation.
However, as time went by, more and more employees were poached by Xinghuo Express and resigned, which finally made these express delivery giants restless.
at this time.
In a high-end club, several bosses from STO Express, YTO Express, ZTO Express, and Yunda Express sat together, a rare occurrence.
"Alright, since everyone's here today, let's not waste any more time on small talk."
"If Xinghuo Express were only expanding into the express delivery industry, that would be fine. The domestic market is so big, it can accommodate that."
"But if we let Xinghuo Express continue like this, none of us will have anything to eat. Let's all come together today and come up with a solution!"
Shentong's boss, Chen Jun, spoke first.
"Ha, what's there to discuss? I don't believe Xinghuo Express can keep going like this. We're all smart people; we know the operating costs of a business. By doing this, Xinghuo Express's employee costs alone are twice as high as ours. Unless they increase the unit price of freight, their profits will inevitably be extremely low."
"Even if we get orders through a 'one-cut' deal, given Xinghuo Express's design, it's still a money-losing business."
"The larger the scale, the more money you lose!"
Yu Jiao sneered, his tone filled with dissatisfaction and pessimism towards Xinghuo Express.
He noticed it when Xinghuo Express was established and began to acquire a large number of logistics vehicles.
Furthermore, the profit margin of Xinghuo Express was estimated based on its various expenses.
That's why he had the confidence to say that.
"Old Yu, that's not how it works. Xinghuo Express is backed by Yinhe Technology, which is very wealthy. Even if it loses money, it can still manage. Plus, it has the support of Pin Yidao orders, so even if it loses money, it won't be much."
"Spending money to seize the market in the early stage and then raising prices later is an old industry practice. In my opinion, Xinghuo Express is following this approach."
"If we don't take it seriously from the beginning, I think we might not have any chance later on."
"Don't forget how many companies there were in the express delivery industry before, and how many there are now."
Lai Song from ZTO Express spoke up to refute Yu Jiao.
"I don't know if you've paid attention to the person in charge of Xinghuo Express. He's only 22 years old. Don't underestimate him because of his age. He's a classmate of Wang Donglai, the founder of Yinhe Technology. It must have been his idea to found Xinghuo Express."
"Judging from the employee benefits of Galaxy Technology, it is clear that Xinghuo Express has continued to improve them. From this point of view, I do not think that Xinghuo Express is just temporarily improving employee benefits. It is possible that this will be a long-term practice."
"Spark Express may not make a profit for three to five years, but with the support of 'one-cut' orders, it will only lose a maximum of 100 million yuan per year. Think about it, with Galaxy Technology Group's deep pockets, is losing a few hundred million yuan even a big deal?"
"Spark Express doesn't make money, but we can't afford not to."
"From this perspective, our relationship with Xinghuo Express is that of complete competitors, with virtually no room for harmonious coexistence."
"Perhaps some of you here will not be able to hold on due to the impact of Xinghuo Express's business."
Nie Yun's final words immediately drew the ire of the other three. "What a joke! We've been building our courier business for so many years. If you can bring us down by throwing money at us, we might as well sell the company and retire."
"Exactly. No matter how well Xinghuo Express packages itself, it still needs to make a profit. I don't believe it can keep doing this forever. Yinhe Technology can do this because it is a high-tech company with high product premium capabilities. Does the express delivery business have that capability?"
“The reason why no one took action before was to give Galaxy Technology face, but Xinghuo Express’s actions clearly violated industry rules and affected everyone’s interests. This trend must be suppressed.”
"People start companies to make money, not to do charity. If they really wanted to do charity, they would just donate money. Why bother starting a company? Galaxy Technology is already notorious, and now they want to do this in the express delivery industry. We must boycott them!"
Soon, everyone reached a consensus on their reaction.
For courier companies that have already established a foothold in the market, maintaining the current situation is the best course of action.
Even if there are new entrants, as long as they are not like Xinghuo Express, they can accept them.
But they despise and hate companies like Galaxy Technology from the bottom of their hearts.
Offering such good benefits to employees when you start a company—isn't that disrupting the market and the normal business environment?
Cutting off someone's livelihood is like killing their parents.
Although the heads of STO Express, YTO Express, ZTO Express, and Yunda Express are all from the same hometown, their relationship is not particularly good.
The phrase "the sounds of chickens and dogs can be heard from one another, yet they never visit each other until they die" is the most apt description of this situation.
The reason we were able to gather everyone together this time is because the threat posed by Spark Express is too great.
Although there are many e-commerce platforms in China, only Taotian Group, JD.com, and Pinduoduo are large-scale.
JD.com has its own courier service, so they can't handle JD.com's orders.
In order to better cooperate with Taotian, they had no choice but to accept the investment from Taotai Group.
Now, with the launch of Xinghuo Express by Pinduoduo, their business volume has been further reduced.
Therefore, suppressing the development of Xinghuo Express naturally became a consensus.
……
It must be said that the efficiency of STO Express, YTO Express, ZTO Express, and Yunda Express is quite fast.
After the consensus was reached, Wang Donglai soon received a phone call.
After hanging up the phone, Wang Donglai immediately called Xu Zhibin.
How is Xinghuo Express progressing now?
Xu Zhibin was called over by Wang Donglai and was a little confused about the reason for the call, but when asked the question, he immediately replied: "Boss, we now have 104 heavy trucks, 287 medium trucks, 24 distribution points and 14 regional transfer stations, as well as 5174 employees."
The express delivery industry is a capital-intensive industry.
Transport vehicles, independent outlets, service stations and stores...
These things require a lot of money to build; they are all tangible assets.
Therefore, Xu Zhibin's ability to develop to this scale in such a short period of time is definitely due to a lot of hard work.
However, Wang Donglai was still somewhat dissatisfied with this speed.
“This speed won’t do. It’s August now. I’m setting a target for you. There are still four months until the end of the year. I want you to increase this scale by at least three times.”
"Of course, just name your development funding for Xinghuo Express, and the finance department will approve it immediately."
“Three times is just the minimum target. On this basis, for every doubling, the year-end bonus coefficient for all Xinghuo Express employees will increase by 0.1. You can send an email notification to all employees.”
"I don't care how much money was spent, I only care about how much was done and whether it was done well."
Upon hearing the target Wang Donglai gave, Xu Zhibin's eyes widened immediately.
My mind raced and I started calculating.
Once the logistics fleet is assembled, as long as the money is in place, both vehicles and drivers are readily available.
Warehousing and storage facilities can also be resolved by spending money.
In just over ten seconds, Xu Zhibin understood.
He immediately replied in a firm tone, "Don't worry, boss, I guarantee I'll complete the task."
"Okay, it's good that you're confident you can do it. Are there any other problems? If so, just tell me and I'll help you solve them!"
Wang Donglai nodded, not surprised; he knew Xu Zhibin's capabilities.
After these years of training, coupled with his learning ability and Wa's risk control, there shouldn't be any major problems.
Xu Zhibin hesitated for a moment before speaking, "Boss, the salaries we offer our employees are more than half that of our competitors in the market. Adding in other costs, our labor costs are twice that of our competitors, or even more."
"The express delivery industry is a capital-intensive industry with low profit margins. The average net profit margin is only about 5%. The higher the market share, the higher the net profit margin."
"Based on our costs, Xinghuo Express would need to capture at least 15% of the express delivery industry."
"15% is just enough to break even; to make a profit, we need a larger market share."
"Furthermore, as Xinghuo Express grows in scale, its costs will also increase. If we want to become a leading company in the express delivery industry, with our current costs, we must be able to consistently capture 30% of the entire express delivery industry's business volume to make a profit."
Xu Zhibin was interrupted by Wang Donglai before he could finish speaking.
"Do you think Xinghuo Express is offering too high a salary and want me to reduce employee benefits?"
Wang Donglai went straight to the point and asked.
Xu Zhibin shook his head and said, "Boss, that's not what I meant. The express delivery industry is a tough one. Whether it's a freight driver or a courier, they all work in all kinds of weather and have to work overtime to meet deadlines. It's only right that they get better pay."
"What I mean is, could we adjust the salaries for administrative staff positions? The necessary benefits should be provided, but the focus should be shifted towards frontline employees."
A hint of a smile appeared in Wang Donglai's eyes, but he didn't show it. Instead, he calmly said, "Tell me in detail."
Seeing this, Xu Zhibin breathed a sigh of relief and said, "Boss, I've observed many companies, and the larger the company, the more likely this kind of situation is to occur."
"Those who do the work are not as good as those who make PPTs; those who are good at doing the work are not as good as those who are good at talking; those who do the work are not as good as those who are good at currying favor. Some middle managers flatter their superiors while exploiting their subordinates to gain credit."
"Although these phenomena do not occur within the group, Xinghuo Express faces some difficulties in handling salary and benefits due to our employee treatment and welfare system."
"Courier salaries should be over 10,000 yuan, and the minimum expected salary for office clerks and management is also around this level."
"So this is a difficult situation, and I'm worried that it might trigger online public opinion."
A smile appeared on Wang Donglai's face as he said, "You've made the right choice."
"Indeed, different positions create different values, and the express delivery industry is one that prioritizes the ability to fulfill contracts."
"The best delivery service is one that can deliver packages to users faster and better."
"In this process, service attitude also needs to be considered."
"Currently, the only courier companies that can still insist on door-to-door delivery are probably JD.com and SF Express; other companies simply cannot do it."
"It is essential to distinguish between primary and secondary matters."
"For a courier company, couriers are a very important part."
"I agree with your suggestion to adjust salary levels to favor delivery drivers."
"But if that's all there is to it, then I think you haven't done your job as the person in charge of Xinghuo Express properly."
Xu Zhibin's heart skipped a beat when Wang Donglai said those words.
Wang Donglai spoke calmly, but Xu Zhibin was shocked by what he said.
At Wang Donglai's level of status and position, every word and action will change many people and many things.
Just like right now. (End of Chapter)
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