Local courier firm to offer even faster deliveries
A major local courier firm announced it will expand its parcel delivery service to "speed up delivery, air freight and cold chain logistics" amid ongoing conversions of private courier giants.
The Shanghai-based YTO Express has separated its services into three "networks" to focus on common parcels, fast delivery, and heavy parcels, which include air transport and cold chain, the company announced today.
YTO and most other major private courier firms used to focus on low-cost parcel delivery services, mainly to meet the demands of enthusiastic Chinese online shoppers.
It normally costs around 5 yuan (US$0.77) to deliver a parcel to other city districts by the next day, or about 10 yuan to other provinces in China with a two-day delivery time. The new, fast delivery service promises to deliver a parcel within the city in 8 hours.
The expanded services aim to offer faster and better quality delivery services, as well as evolve the company into a comprehensive logistic firm, according to YTO.
Most of China's private courier giants, such as SF, ZTO and Yunda express, have been expanding or upgrading their services.
"Courier firms have to improve their service and speed ... as well as target the international market," said Yu Weijiao, president of the YTO Express.
YTO owns 11 cargo aircraft and has opened over 1,000 cargo transport routes. The Shanghai-listed company has also acquired Hong Kong-based Ontime-Express to step into the cross-border e-commerce market, according to the company.
Its competitors, SF and ZTO express, have also announced they will target the "comprehensive logistic service suppliers." SF Express, for instance, has established departments for logistics on automobile accessories, food and medical products, financial insurance as well as cross-border e-commerce.
"It has become a common trend for China's private courier firms to convert into logistic companies, just like the development of global giants UPS and Fedex," said Xu Yong, a chief analyst at Logistic News and Information.