Jingdong, a popular Chinese online retail platform is changing the dynamics of package delivery in China by introducing their a logistics network for shipping consumer and businesses’ products. They made the announcement on Thursday saying, their first rollout will include business and consumer customers in Beijing, Guangzhou, and Shanghai, giving them an opportunity to send their products domestically. Customers will use either JD.com app or a pickup request through WeChat a social messaging app.Alibaba Group Holdings is JD’s e-commerce rival in China, and Jingdong company aims at expanding their services to include business and residential deliveries between any two places across China’s mainland.
They will turn their company into a wider service delivery firm using their network of trucks, warehouses, and vans competing with firms like SF Express and ZTO Express while resembling corporate carriers like FedEX Corp and United Parcel Service Inc.In a statement, Zhenhui Wang, JD logistics CEO said that this was a huge step towards strengthening the countrywide logistics network, which JD.com has created in over a decade. The firm confirms that the network is capable of reaching up to 99% of the population while delivering 90% or more orders daily. Jingdong and Alibaba online competition continue to increase improving their logistics capabilities and fighting for a market share in globe’s second-largest economy.In the second-quarter Net revenue, JD.com registered a 122.3 billion Yuan, equivalent to $17.7 billion.
The company homegrown distribution network includes 500 plus warehouses, 15 logistics parks, close to 7,000 pickup and delivery stations and 250,000 delivery and transportation vehicles, some of which are operated by their partners. Jingdong uses commercial airlines to ship goods and deploys drones to access remote rural areas in China.ShipMatrix Inc. president Satish Jindel said that while ordering through JD.com, 95% of the deliveries are attended at Jingdong’s fulfilment centre and delivered through the company’s uniformed driver, in a branded delivery car. ShipMatrix Inc is a company that analyzes the shipping data. Jingdong spokesperson communicating through email noted that China has very few countrywide logistics providers and none with their speed, reach and integrated supply chain abilities. She added that they intend to put all logistics assets in better use by opening their infrastructure and technology to more shippers.