Express delivery giants struggle to stem losses as price war intensifies
MOST of China's express delivery giants lost money in 2020 despite delivering significantly more parcels, as a new entrant backed by Pinduoduo exacerbated an ongoing price war that has squeezed margins, reports Beijing's independent news portal Caixin
10 May 2021 - 19:00
The four listed Chinese courier firms that had reported by April 30 lost a total of CNY480 million (US$74.16 million) in the first quarter, an analysis of their quarterly earnings shows.
J&T Express, a new entrant backed by group-buying giant Pinduoduo, has ratcheted up pressure on the sector, using a money-losing strategy to aggressively expand its foothold.
STO Express was particularly hard hit. Its net profits were down 97 per cent year-on-year on operating revenue of CNY21.6 billion, down 6.6 per cent. Meanwhile Best Express actually lost CNY0.25 for each parcel it delivered.
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