Oct 19, 2018 (China Knowledge) - JD.com will be using its impressive logistics network to launch a new parcel delivery system as the firm looks to take a share of China’s lucrative express delivery market.
JD.com’s logistics network now includes 15 logistics parks, more than 500 warehouses, 7,000 pickup and delivery stations as well as 250,000 transportation and delivery vehicles which help it to deliver more than 90% of orders on its e-commerce platform within 2 days.
JD.com’s new parcel delivery system will allow customers in Beijing, Shanghai and Guangzhou to send items domestically through the company’s app or through pickup requests on WeChat. The firm targets point-to-point delivery throughout the country as its end product.
The company already provides logistics and distribution services to corporate customers who want to make use of its logistics network. Expanding to the consumer segment will help the company lower its unit cost of delivery and become more competitive.
JD.com’s incursion into the express delivery market adds to an already competitive market which features major players such as Alibaba’s Cainiao, ZTO Express and YTO Express Group. The fight between China’s two largest e-commerce players looks to take place in the logistics sphere as both companies pour money into developing and enhancing their capabilities.
China’s express delivery market was worth around USD 140.7 billion last year, increasing by 32% from 2016. Delivery firms sent more than 40 billion parcels in 2017.
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