When will the “inner volume” of instant distribution in the same city be closed



&On March 30, flash delivery received another $125 million in D2 round financing, proving once again to the outside world how expensive the game of one city instant match is. Prior to this, Shunfeng city and dada group also received hundreds of millions of dollars of capital transfusion. In a few years, data scheduling support, refined operation, a large amount of capital investment and so on have built a high barrier to the track. However, it seems that the old players in the besieged city have no idea when “neijuan” will stop. In addition, the proud one-to-one distribution of flash delivery is gradually copied by many enterprises, and the attractiveness is somewhat discounted. It is particularly important to find another mature new highlight.

Recapture capital transfusion

According to reports, the financing of Shansong capital involves Shunwei capital, Wuyue capital, SIG Haina Asia, Tiantu investment, Haisong capital, etc., and light source capital serves as the financial consultant. After this round of financing, SIG Haina Asia became the largest institutional investor of flash delivery. Data show that sig Haina Asia is a quantitative trading financial company headquartered in the United States. It entered China in 2005, mainly focusing on the Internet and consumption. Baobaoshu, today’s headlines, rebate net, Himalaya and other Internet companies have been invested by sig Haina Asia.

If you count carefully, according to tianyancha’s information, flash delivery, which was established in 2013, has obtained a total of 11 rounds of financing. In April 2016, flash delivery achieved breakeven. After entering 2017, the number of financing has increased sharply, and by the end of 2018, it has obtained six rounds of financing support.

Perhaps the fierce external competition environment and the entry of giants have forced the flash delivery without “big tree” to supplement ammunition. Especially in 2018, the head enterprises began to finance and integrate frequently: Ali united with ant financial services acquired hungry with us $9.5 billion; meituan launched “meituan flash purchase” business to realize 30 minute door-to-door delivery; rookie invested US $290 million in intra city instant distribution enterprises; Shunfeng launched “intra city express delivery” business to enter the intra city distribution track; and realized the combined Jingdong home platform Dada, a crowdsourcing logistics platform, received another US $500 million in financing.

For a time, instant distribution logistics is in the limelight. The heavy investment of enterprises has brought consumers’ cognition of 60 minute delivery timeliness. At the same time, the education market also expands the radiation radius of offline retail. This new track, which is different from e-commerce consumption and offline shopping, expands wider and wider, and further shortens the purchase time and distance of consumers.

Service tends to be homogeneous

In addition to sufficient food and grass on the capital, flash delivery is also constantly adjusting its playing methods to expand its market share. In February 2017, after the completion of round C financing of US $50 million, flash delivery, which started from the C-end, announced to expand the b-end business. Zhongfu Telecom, Zhou Dafu, Gome, SKP, Aihui and Xiaomi have established cooperative relations with them. On the other hand, flash delivery repositioned its strategic direction and defined the brand difference of “flash delivery in a hurry, flash delivery in a one-to-one rush” in 2019 to strengthen user awareness.

However, the reporter from Beijing business daily noticed that due to the extension of on-the-spot service in the same city to “deliver everything”, the efficiency of transport capacity scheduling of various platforms is constantly iterative, and the refined operation has become the goal of enterprises, the service quality of on-the-spot service platforms in the same city shows an overall improvement, and the trend of service category convergence.

For example, it costs 67 yuan to deliver a document within 5kg from Shilibao subway station to Shunyi subway station. The delivery time is about 2 hours and 30 minutes, and the mileage is 26.6km. In the same city of Shunfeng, the price is 63 yuan, the time limit is about 3 hours, and the mileage is 32.5 km. If you choose special delivery service, Shunfeng city will charge 15% more special delivery fee of the order price, and the user will have to pay 72.5 yuan. However, it also means that if the user’s consumption scenario does not have a rigid demand for special delivery and timeliness, the “order pooling” mode of other platforms will be more attractive because of its low price. Not only that, digital, jewelry, auto parts and other high price categories have also become the service standard of various platforms.

“How much imagination space can one-to-one emergency delivery open? How much demand and how deep can one excavate for emergency document delivery and expensive goods delivery? At present, the market is still in a wait-and-see period for the expandable market space of flash delivery.” A person engaged in logistics industry told Beijing business daily. It can be seen that since its establishment, no news of the planned listing has been heard from flash delivery.

Zhao Xiaomin, an express expert, believes that the “one-to-one special delivery” service is also being provided by other enterprises. It remains to be seen how long the attraction of flash delivery can last.

Increased competition on the track

An unexpected epidemic once again pushed forward real-time distribution. This is not only reflected in the rapidly rising orders of various platforms, but also the re penetration of instant service in the sinking market. The non-contact demand further stimulates the acceptance of this kind of service by the user group.

But there is no denying that it is still an expensive capital game.

According to the prospectus submitted by dada group, from 2017 to 2019, the company invested 1.526.7 billion yuan, 1.9183.3 billion yuan and 2.679.1 billion yuan respectively in the payment cost of riders, accounting for more than 90% of the total expenditure. In March, dada group obtained an equity investment of US $800 million from Jingdong, while Shunfeng city also received continuous blood transfusion from the group in the same month, with a capital increase of RMB 409 million. According to a group of unaudited financial data, the net loss of Shunfeng city in 2020 reached RMB 780 million.

New entrants are hard to enter, while old players are trapped in a long-term “infidelity”. Zhao Xiaomin said that in fact, it seems easy to match in the same city, but the actual barrier is very high. The company needs strong data technology support, refined operation and sufficient financial strength to continue to do in this segment of the track. It is estimated that it will take 5-10 years for the ready to use market to really mature. Generally speaking, the market competition will be more fierce in the future. The independent listing of meituan distribution business of Shunfeng city and meituan is also something to be expected. Therefore, the number of cards in hand is very limited, and the listing process needs to be promoted as soon as possible. This financing is a timely help.

Beijing Business Daily reporter Zhao Qian

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