Internet shipping attracts entrepreneurs and chaos continues to be broken

Internet shipping attracts entrepreneurs and chaos continues to be broken

Wu Ziye

[At the end of 2017, the total volume of B2B freight market in the same city of China was 1.5 trillion yuan. There was not only strong demand, but also structural dividend matching supply and demand, and a large influx of capital]

In the era of Internet economy, the freight industry does not seem to be very hot. However, with the exploration of entrepreneurship tuyere, also gave birth to a number of Internet freight platforms such as cargo pulling, fast Dog Taxi platform.

City freight is already a trillion market. According to the data released by DCCI, at the end of 2017, the total volume of B2B freight market in the same city in China reached 1.5 trillion yuan. There was not only strong demand, but also a structural dividend matching supply and demand, and a large influx of capital. At present, the Internet freight platform mostly uses the "drop-by-drop" mode of the freight industry, that is, on-line and off-line transportation. The freight platform began in 2013, and about 200 freight platform companies were born in 2016.

"There are still many painful points in urban travel, especially in the face of many problems and unsatisfied demand for urban goods travel, including taxi trouble, black cars, with goods rejected, no one to carry a series of painful points." Chen Xiaohua, the founder of the fast dog taxi, said in an interview with reporters yesterday that the idle and waste of truck resources were also serious due to the highly dispersed freight industry and the inefficient matching of trucks and goods. In addition, freight trading links to face-to-face and telephone transactions mainly, non-standard transactions and other industry pain points continue to emerge. The emergence of Internet freight platform can improve the pain point of the industry to a certain extent, and provide a more convenient mode of transportation.

Over the past two years, there have also been some changes in the Internet freight platform. Compared with the past concept of the Internet logistics industry, Chen Xiaohua said that the concept of fast dog taxi is to create a freight taxi, the strategic goal is to build urban public transport facilities for goods travel, the next two quarters in 12 cities to launch a batch of new energy trucks. Chen Xiaohua told reporters that the platform now mainly orders from B-end merchants, the future will focus on developing the C-end market. Speaking of how to attract C-end users, Chen Xiaohua responded that the fast dog taxi will strengthen its action in word of mouth and advertising, but will not take the form of a subsidy war.

"Internet freight platforms are less frequently used in these netbook markets than in drip-drip markets, and the way subsidies are not applicable." Chen Xiaohua said, the Internet freight market will not be smaller than the dripping car. "We checked five or six cities. The number of drivers who took orders every day and the number of dripping cars were almost 1:1. Because personal users used to use it several times a year, but in the past the main users were business people, and for them it was infrastructure, you had to use it if you opened a store, and delivery costs were much lower than the cost of running your own trip. After facing the masses, the number of specific market size can not be estimated, but China only has a freight market of 1 trillion per year in the same city.

Although the development prospect of the Internet freight industry is better, the industry competition is more intense.

Some Internet freight platforms have fallen, such as Shield Express, Speedy, Blue Rhino, No. 1 and so on. Zhang Xilong, founder of Shendun Express, said that city-to-city freight is a low-frequency, highly personalized market based on acquaintances trading. Besides subsidizing prices, Internet logistics platforms are generally difficult to attract ordinary shippers and drivers. As for the failure of Shintun Express, he believes that the industry's subsidies and its high operating costs make it difficult to sustain. At the same time, the core team of the company lacks the insiders in the logistics industry, causing the aegis express to take a lot of detours.

In addition, for the freight O2 O industry, standardization construction is more difficult, which is also a major challenge for the development of the industry. Compared with passenger transport, freight standardization is relatively complex, route, time, type of goods, weight and volume, vehicle demand, driver's experience, credibility and other aspects of greater differences. "Take the price as an example, most platforms are now using a snatch order, bidding mechanism, drivers themselves to price, users to compare, inevitably there will be inevitably no good goods cheaper situation. In the future, the platform will standardize the price according to the source of goods, the source of vehicles, the location of ownership, the number of cars and so on. Miao Tian, a co-founder of the company, said in an interview with the media.

Due to the higher operating cost, the profitability of the Internet freight platform is also a major problem. "We still do not consider profits today." Chen Xiaohua told reporters. He believes there are two main ways to make a profit in the future: one is to start taking commissions on a certain amount of trading like a drop; the other is that drivers can develop a post-market to make money when their daily workload on Internet truck platforms reaches a certain level. If there are too many drivers using App, these Internet truck platforms can make money. It can expand some businesses, such as gas stations and other services.

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