When I am reborn, I just want to be a top student
Chapter 751 Using a borrowed knife to kill: A conspiracy within the express delivery industry
While the entire internet was shocked by the powerful performance of the Xuanwu battery.
The domestic express delivery industry has also become chaotic.
Since Xinghuo Express started lowering its prices, the entire express delivery industry has been like a drop of cold water falling into a huge, red-hot oil pan.
The CEOs of express delivery companies like STO Express, YTO Express, ZTO Express, and Yunda Express have cursed Galaxy Technology countless times.
However, due to the terrifying order volume of the "Fight for a Difference" campaign, they dared not openly vent their dissatisfaction.
They couldn't even find a middleman to relay messages or mediate.
Logically speaking, Jack Ma also holds a significant number of shares in courier companies, but the decrease in courier prices is also beneficial to Taotian Group.
Therefore, their attempt to resolve the matter through Jack Ma's channels was naturally unsuccessful.
Although Sanyuan's minimum order price for express delivery is low, it's not like they're not making a profit.
Left with no other choice, each family reluctantly agreed.
but.
When Xinghuo Express announced again that in the North China, East China and South China regions, the agreed price for express parcels weighing less than two kilograms would be reduced from three yuan to 2.5 yuan, while the price for parcels weighing less than one kilogram would be a uniform 2 yuan.
For large packages, if they have a monthly subscription agreement or a contract with Xinghuo Express, they can enjoy a 10% discount on top of the agreed price.
As for other regions besides North China, East China, and South China, due to cost and manpower reasons, prices will be reduced later once manpower is replenished.
The simple yet effective price reduction strategy has proven surprisingly powerful.
As soon as the price was announced, a large number of merchants immediately reached monthly subscription agreements with Xinghuo Express.
Don't underestimate the difference of just 50 cents or a dollar; when the scale of the business grows, it becomes a significant sum.
For business people, the pursuit of profit knows no bounds.
People naturally don't want to earn less if they can earn more.
And when Xinghuo Express issued the price reduction notice immediately.
The owners of companies like STO Express, YTO Express, ZTO Express, and Yunda Express also received the news.
Inside a high-end private club in Shanghai.
The four people from STO Express, YTO Express, ZTO Express, and Yunda Express reunited.
This time, the four of them gathered together, and the awkwardness and indifference from before were gone.
Although the relationship between the group wasn't good and hadn't improved much.
But at this moment, they were kindred spirits, even though they were from different corners of the world.
The entry of Xinghuo Express directly caused huge losses to the four people's business.
This period of time didn't even last a month.
However, their losses have already exceeded ten million.
And this will continue, as is clearly visible to the naked eye.
It was precisely because they understood this that they reunited.
The room was filled with smoke.
After a while, Chen Jun from Shentong finally extinguished his cigar and said, "Everyone is sitting here now, so let's just say what we need to say."
"We will absolutely not allow Xinghuo Express to continue this practice of disrupting industry rules."
"If this continues, we'll all be starving."
Since someone had spoken up, Lai Song from ZTO Express also said fiercely, "Yinhe Technology's reach is too long. They want to make money from everything. We were cooperating well, but they insisted on entering the express delivery industry, and now none of us are making any money."
"In my opinion, we must teach him a lesson. He's a young man who has held power for so many years and became famous at a young age. He definitely doesn't take us old guys seriously. Thinking about it that way, it makes sense."
“When I started my business, he was still a baby. Now that he has money, he throws it around and breaks industry rules. He really thinks he can do whatever he wants just because he has money. It’s a joke.”
"Paying social insurance and housing fund for deliverymen, buying commercial insurance, and providing year-end bonuses, performance bonuses, and high-temperature cooling subsidies—I wonder if Wang Donglai has lost his mind. Why would he refuse to make money and become a sucker?"
Yu Jiao's tone was full of incomprehension; she completely failed to understand Wang Donglai's actions.
indeed!
Although Xinghuo Express is a newcomer to the express delivery industry, it has developed very quickly thanks to the backing of Galaxy Technology, a nationally renowned giant, and the preferential treatment from the PinYiDao platform.
Especially after its large-scale launch, the high salaries and benefits offered by Xinghuo Express spread like wildfire.
The deliverymen at the bottom don't care about the competition between companies.
We also communicate regularly and tease each other about our own company websites.
Through this exchange, they learned about the benefits offered by Xinghuo Express.
People are not worried about scarcity but about inequality.
We are all the same kind of people, with two hands, two feet, and one head, and we do the same jobs, but our salaries differ by almost half.
Such a disparity is unacceptable to any deliveryman with even a modicum of ambition.
Galaxy Tech's generous benefits are evident in numerous online searches.
Holiday red envelopes, team building benefits, generous afternoon lunches, free snacks, and more...
There are quite a few people who even directly reveal their salary information.
The numerous subsidies included in the program, such as high-temperature subsidies, transportation subsidies, housing subsidies, and meal subsidies, have dazzled netizens.
Therefore, after learning about the benefits and compensation offered by Xinghuo Express, the first thing these deliverymen asked was whether Xinghuo Express was still hiring.
Xinghuo Express is naturally short-staffed. It's not easy for them to train a qualified, experienced courier from scratch who knows the local traffic conditions and residents' situations.
The simplest way is to poach people from competitors.
No need for sophisticated business skills, just lay out the salary and benefits offered by Xinghuo Express.
And this is indeed the case.
In less than ten days, Xinghuo Express added 50,000 couriers, all of whom were smart people who had switched jobs from other express delivery companies.
The rate of increase in this number may seem large when all the numbers are added together, but it's not much when viewed on a national scale.
After all, Xinghuo Express is different from other express delivery companies.
Not only are there higher requirements for delivery time, but couriers are also required to truly deliver goods to the door and provide smiling service to customers.
This requirement is now the same as that of SF Express and JD.com.
Furthermore, Xinghuo Express is even encouraging its couriers to use cameras to record their daily delivery routines, edit the footage, and post it on content platforms such as Douyin.
Firstly, it can increase one's income, and secondly, it can record the work content as evidence of work, so that one can defend oneself if there are negative reviews.
Of course, Xinghuo Express isn't just offering empty encouragement.
As long as the deliveryman is willing to do this, he will receive a data traffic subsidy of 100 yuan per month.
With such requirements, more delivery drivers are naturally needed.
Zhongtong, Shentong, and Yunda, among other courier companies, deliver packages to stations and then have consumers pick them up themselves.
There are only two or three people at the courier station, and consumers have to pick up their packages themselves.
Some stations are directly operated, while others are franchised, which further reduces the labor costs for courier companies.
All of Xinghuo Express's stations are directly operated, and the employees at the stations all have formal contracts with Xinghuo Express and enjoy all the benefits they are entitled to.
全国目前有一级行政区34个:23个省,5个自治区、4个直辖市、2个特别行政区;二级行政区333个:293个地级市、7个地区、30个自治州、3个盟;三级县级行政区2845个:963个市辖区、382个县级市、1329个县、117个自治县、49个旗、3个自治旗、1个林区、1个特区;四级行政区乡镇级行政区39945个:包括8393个街道、21297个镇、9120个乡、981个民族乡、152个苏木、1个民族苏木、1个县辖区。
This large country, with a population of 1.4 billion and a land area of over 9.6 million square kilometers, is reflected in these figures.
With a workforce of less than 100,000, Xinghuo Express is far from sufficient to provide high-quality express delivery services.
According to Xu Zhibin's thinking, at least two of the three major express delivery companies (STO Express, YTO Express, ZTO Express, and Yunda Express) would have to go out of business for Xinghuo Express to barely gain a foothold in the express delivery industry. Xu Zhibin, of course, wouldn't reveal his true intentions.
However, there are simply too many intelligent people in this world.
Even if Xu Zhibin didn't say it, you can still tell from Xinghuo Express's practices.
Reduce delivery fees, improve delivery personnel compensation, and raise delivery service standards.
These three moves are all aimed at the vital points of these courier companies.
Business is about making money.
Xinghuo Express certainly didn't do this to provide welfare or give away money.
Therefore, the severe losses in the early stages must be due to a larger objective.
It's a very simple logic that can be derived from distraction.
This is why Chen Jun, Yu Jiao, and the others got together again.
If they don't react to the expansion of Spark Express, they might become frogs being slowly boiled in water.
"We're not sitting here to discuss and analyze the development of Xinghuo Express, but to find a way for our own company to survive."
Hearing what everyone said, Chen Jun said with some dissatisfaction.
"Spark Express is backed by Galaxy Technology, which reportedly has hundreds of billions of yuan in cash on its books. If they really throw money at us, who can stop them?"
"Not to mention that both Pinduoduo and Xinghuo Express are subsidiaries of Galaxy Technology Group, so it's inevitable that their order volumes will be tilted towards each other."
"Let's think of a way, can we think of a way?"
"Are you suggesting we burn down Xinghuo Express's transit warehouse and sorting center, and then have Xu Zhibin run over and killed?"
Nie Yun, who had been silent until now, spoke up in an annoyed tone upon hearing Chen Jun's words.
“I think this method is good, but we’re not going to go to such extremes. Doesn’t Xinghuo Express claim to be aiming for higher delivery speeds? We can certainly use some legal means to increase its efficiency.”
Lai Song's eyes lit up, as if he had thought of something, and he spoke up.
"Mr. Lai, what are your thoughts? Please share them."
Yu Jiao quickly pressed for more information.
"You've probably all received quite a few complaint calls from your franchisees at the lower-level sites lately, right? Could we make use of these people?"
A slight smile played on Mr. Lai's lips as he spoke with a malicious glint in his eyes.
Upon hearing this, a look of sudden realization appeared on everyone's faces, as if they had suddenly understood.
To be honest, those who can open express delivery stations as regional franchisees are usually local bigwigs.
Just like when SF Express changed from a franchise to a direct-operation model, they went door-to-door to compete.
The three major express delivery companies (STO Express, YTO Express, ZTO Express, and Yunda Express) are using franchising to save costs and attract more people to maintain their business.
Lai Song's words immediately gave them a way to solve their current difficulties.
They may not necessarily take action.
The best approach is to have the lower-level websites take action.
This approach avoids both risk isolation and genuinely angering Galaxy Technology, preventing the conflict from escalating.
Thinking about this, everyone immediately lost the desire to stay there.
So everyone left.
……
the other side.
Beijing.
Yellow Group Headquarters.
After the initial excitement of the IPO, Huangtuan's management team calmed down.
And at that very moment, a new food delivery service called "Pinhaofan" suddenly appeared on the market.
If they hadn't known that Pinhaofan was backed by Galaxy Technology, they would never have taken Pinhaofan seriously.
The domestic market is too big; Huangtuan and Ele.me have already taken more than 90% of the food delivery market.
No matter how much trouble the companies below cause, they cannot pose a threat to them.
Their large delivery rider team is their moat.
However, Pinhaofan, which is supported by Galaxy Technology, is different.
Galaxy Technology is not only wealthy, but its founder, Wang Donglai, is also known for his unconventional approach.
Offering such good treatment to delivery drivers and their employees is simply against human nature.
Ordinary people are unwilling to share their money with others.
If the compensation offered by Galaxy Technology were reduced to the market average, given its current scale, it could save at least five or six billion yuan annually.
More than 99% of domestic enterprises probably don't even make 500 to 600 million yuan in profit a year.
It's easy to imagine how good the benefits and compensation are at Galaxy Technology.
Knowing that Pinhaofan is a wholly-owned subsidiary of Galaxy Technology, and that the benefits and treatment given to its delivery riders are on par with those of Galaxy Technology's full-time employees.
Wang Xing and other senior executives of Huangtuan realized that a threat had emerged.
Although they have captured 70% of the market share, this is not a fixed position.
If you're willing to spend the money, you can totally snatch the business away.
Merchants need to make money, so they choose whoever can promote the business and bring in more orders.
Food delivery riders need to make money, so they go to whichever platform pays the most.
There is absolutely no loyalty between food delivery riders and merchants.
Faced with Galaxy Technology's financially powerful offensive, they had no ability to resist.
And this is indeed the case.
When Pinhaofan released the slogan "Eat a big meal for just one cent," Pinhaofan immediately came into the public eye.
This advertising slogan is not an exaggeration at all.
New users can enjoy a feast for just one cent.
According to inaccurate reports, Pinhaofan attracted 15 million new registered users nationwide on its first day of launch.
As for the number of people who ordered food, it exceeded eight million.
Such a massive number of orders also poses a significant threat to Pinhaofan's delivery service.
Although a large number of delivery riders had been prepared beforehand, it was still not enough to meet the demand.
Finally, a part-time job channel was launched urgently.
They directly recruit riders from other platforms and pay them a ten-yuan delivery fee for each order they deliver.
They spent money lavishly and managed to overcome this difficult situation by sheer financial resources.
At the same time, it also made countless Huangtuan delivery riders aware of Pinhaofan and its excellent benefits.
Changing jobs naturally became an inevitable thing.
Wang Xing of Huangtuan is currently gathering his senior executives to discuss how to deal with the competition from Pinhaofan! (End of Chapter)
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