The Consequences of the Price War in the Domestic Express Industry Are Becoming More and More Obvious
News of unpaid wages and outlet closures in the express delivery industry has been on the rise recently. There have been reports that some express companies, such as Yunda and ZTO, have suspended their stations in Sanming, Fujian province, Changchun, Jilin Province and Suzhou, Jiangsu Province, and the backlog of express items has not been delivered. The express outlets with problems are mainly belong to STO Express, YTO Express, ZTO express, Yunda Express, Best Express, TTKDexpress. This is closely related to the business model of price war among express companies. According to financial reports from various express companies, YTO received 2.11 yuan for one delivery in August, down 22.57% year-on-year. Yunda Express earned 2.12 yuan per delivery, down 33.75% year-on-year; Shentong Express earned 2.11 yuan per delivery, down 23.55% year-on-year. According to statistics, the average one delivery revenue of the express industry in August was 10.05 yuan, a record low, a year-on-year decrease 13.6% and a month-on-month decrease of 3.7%, and the decline continues to expand compared with previous month. A survey shows that among franchised express delivery companies, 40% of franchisees are losing money, 50% of franchisees break even, only 10% make money. This means that 90% of express franchisees are not profitable. Moreover, the phenomenon that franchisees are difficult to survive will not alleviate in the short term, because “price for Market” is almost the general strategy of all express enterprises. It is expected that things like strikes and runaways at express outlets may become the norm in the future.