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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
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.

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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