On a busy weekday afternoon, you urgently need to deliver an important document to the client, with less than an hour left until the meeting begins, and anxiety and tension fill your heart. At this moment, you thought of flash delivery. With just one phone call, the courier quickly arrives at your doorstep, providing one-on-one exclusive service, making your documents feel like they are carrying a magic carpet and delivered to their destination on time and without error. This is not a coincidence, but a promise that Flash Delivery has always adhered to for ten years - one-on-one urgent delivery of the first brand.
As of June 2024, Flash Delivery covers 295 cities across the country, with approximately 88.9 million registered users and 2.7 million riders. If calculated based on 2023 revenue, Flash Delivery holds approximately 33.9% of the independent one-on-one express delivery service market in China.
With the vigorous development of new retail, the instant delivery track is also full of giants. With strong financial strength, huge user base and advanced technical support, major Internet giants have launched fierce competition in this track. Despite this, Flash Delivery still demonstrated extraordinary value and advantages in multiple important scenarios through its unique one-on-one emergency delivery mode, successfully breaking through the smoke filled battlefield.
After ten years of development, Flash Delivery successfully landed on NASDAQ in the United States on October 4th. Looking back at the financing process of Flash Delivery, its strong shareholder background is truly remarkable. From being led by Jingwei China in the early days, to Wang Sicong's Pusi Capital and numerous well-known investors following suit, this series of investment measures have injected strong impetus into the development of Shansong. In such a situation, one cannot help but wonder, what is the charm of Flash Delivery?
Flash Delivery for Ten Years, Achieving Industry Leading Brands
The one-to-one express delivery industry, as an important component of the same city instant delivery field, has shown a rapid growth trend in recent years. Since its establishment in 2014, Flash Delivery has won the love of millions of consumers with its unique model and high-quality service, and quickly risen to become a leader in this field. In August, Shangpu Consulting conducted in-depth market research on the one-on-one express delivery market in China. Through expert interviews, enterprise research, and cross validation of terminal sales channels, it certified the market position of "Flash Delivery, the leading brand of one-on-one express delivery for ten consecutive years".
So how does Flash Delivery make the brand industry-leading?
Firstly, Flash Delivery can accurately grasp changes in market demand. With the arrival of the new retail era, consumers are no longer satisfied with the speed and service model of traditional express delivery. They crave faster and more personalized express delivery services to meet the increasingly diverse needs of life. The one-to-one express delivery mode of Flash Delivery directly delivers items from the sender to the recipient without any intermediate links, greatly improving the speed and accuracy of express delivery. At the same time, for consumers who value item safety, a one-on-one service model with one rider specifically responsible for one order can better ensure the safety of items.
Secondly, having a large network of riders is one of the key factors for the success of Flash Delivery. The large-scale and professional one-on-one express delivery capacity is the guarantee for Flash Delivery to provide users with fast and safe delivery services. Due to its large scale, the delivery personnel are closer to the customers, resulting in a shorter on-site time and a better customer experience. This is difficult for other smaller platforms to achieve. Therefore, currently, the delivery service can achieve an average of 7 minutes for on-site pickup and 27 minutes for delivery throughout the city. With the increasing demand from customers, the order volume of Flash Delivery continues to rise, attracting more riders to join. The expansion of the rider team further enhances the coverage density and service efficiency of Flash Delivery, resulting in a continuous improvement of user experience and the formation of a "flywheel effect".
And the strong technological strength provides solid support for the development of the Flash Delivery delivery team. After ten years of operation, Flash Delivery has accumulated a large amount of non-standard personalized order data on the user side, and established a big data management model for one-to-one emergency delivery capacity on the Flash Delivery staff side. Therefore, through the order matching system, the most suitable rider can be matched for the corresponding order, making the order response faster and the service efficiency higher. For delivery personnel, efficient order matching can also make their orders more efficient and earn higher income per unit of time.
Once again, a good brand image is also an important factor for Flash Delivery to win the market. Flash Delivery has been deeply cultivating one-on-one emergency delivery services for ten years. In the early stages, it established user stickiness through high-quality services, making the brand image of fast, safe, and exclusive deeply rooted in people's hearts. Currently, the term "Flash Delivery" has become synonymous with instant delivery services and is the preferred brand for people when using instant delivery services.
According to a research report, in the one-on-one instant delivery industry, Flash Delivery ranks first in brand awareness, satisfaction, and recommendation. From 2020 to 2023, the user rating rate of Flash Delivery has steadily increased, from 98.6% to 99.1%.
Under the encirclement of giants, the breakthrough path of Flash Delivery
In the new era of consumption, people are increasingly willing to pay for "time-saving, time-saving, and labor-saving". Therefore, consumption upgrading drives logistics upgrading, and the "local life" starting with takeaway has developed into an industry with a production value of over 100 billion yuan and a market size of trillions in just a few years.
Attracted by the trillion dollar market size, various giants such as Alibaba, ByteDance, Baidu, JD.com, Meituan, Pinduoduo, etc. have launched a fierce battle for instant delivery, and the real-time delivery track has ushered in a "big melee". However, Flash Delivery successfully broke through on this battlefield filled with gunpowder with its unique one-on-one emergency delivery mode.
Compared with the single order mode, the one-to-one service mode of Flash Delivery clarifies that the Flash Delivery personnel only serve one customer at a time from pick-up to delivery, with point-to-point delivery, faster service efficiency, higher certainty, and better security. It can also provide customers with various exclusive services. The essence of this service model is to prioritize user experience and service quality, making the platform's response time shorter, delivery speed faster, and service experience better, meeting the needs of big brand merchants and users who pursue high-quality services, and thus building user stickiness.
More importantly, the one-to-one emergency delivery mode of Flash Delivery also demonstrates unparalleled certainty in important scenarios.
In business scenarios, the delivery of emergency documents is crucial. For example, law firms often need to deliver important documents to clients or courts in a short period of time, and companies may also need to urgently submit bidding documents. Once, a law firm in Shanghai urgently needed to deliver a key document to a client in Suzhou within two hours, and they chose to send it by flash delivery. The courier quickly came to pick up the package and rushed directly to Suzhou without any transfer throughout the process. Ultimately, the documents were delivered on time to avoid potential significant losses.
For the delivery of valuable items, safety and timeliness are the most concerning factors for customers. The one-to-one service mode of Flash Delivery can provide customers with dedicated escorts throughout the entire process, ensuring the safety of valuable items. A collector needed to send a precious antique to an auction house in another city for auction, and ultimately chose flash delivery. Flash delivery personnel, with a high sense of responsibility and professional competence, safely deliver antiques to their destination, leaving customers at ease.
In the medical field, some urgent drugs, medical devices, etc. need to be delivered quickly. A delivery rider said, "At 17:42 pm on May 8th, I received an order for medical equipment from Evergrande Mingdu to Pingdingshan First People's Hospital (Superior Road Campus), which was 8 kilometers away. The medical staff were waiting for me to deliver it as soon as possible. I rushed to the hospital as soon as possible to safely deliver the medical equipment to the medical staff. The medical staff quickly told me the delivery code and rushed into the operating room. Being able to solve the urgent needs of customers, I felt a great sense of achievement in my heart
According to statistics, the success rate of the one-to-one service model of Flash Delivery is as high as 99% in many important scenarios. This data fully demonstrates the reliability and stability of the Flash Delivery service. In the field of instant delivery, a high success rate means that customers can confidently entrust important items to Flash Delivery.
What is the value and charm of Flash Delivery on the market?
On October 4th, Flash Delivery successfully landed on NASDAQ in the United States, with the stock code "FLX" and an issue price set at $16.5, raising a total of $66 million. The reason why Flash Delivery can successfully enter the capital market is closely related to the investors behind it. Looking back at the financing process of Flash Delivery, the shareholder identity behind it is also very impressive.
In 2014, Shansend received several million yuan in Series A financing.
In February 2017, Shansend received a $50 million investment led by SIG (Haina Asia Venture Capital) and Zhiyi Capital, with co investment from Pusi Capital and others. Pusi Capital was founded by Wang Sicong, son of Wang Jianlin. On June 5th, Shansend once again received a $50 million investment led by Shunwei Capital and Hualian Group under Lei Jun, with Hirst International Group and Pusi Capital following suit.
In March 2021, Shansend received a $125 million Series 2 financing from Shunwei Capital, Wuyue Capital, SIG Haina Asia, Tiantu Investment, Haisong Capital, AlphaSquare Group, Axioma Asia Private Capital, Qianshan Capital, and Zhongcai Quanxing Capital. After this round of financing, the valuation of Flash Delivery exceeded 2 billion US dollars.
So in the ever-changing capital market, what exactly do investors value from Flash Delivery?
On the one hand, the existing competition in the traditional express delivery market provides opportunities for flash delivery. The one-to-one express delivery mode of Flash Delivery can meet users' needs for timeliness and personalized services, and form differentiated competition with traditional express delivery. In some specific scenarios, users are more willing to choose the high-quality service of flash delivery rather than the batch processing mode of traditional express delivery.
Meanwhile, with the rapid development of new retail, the trend of online and offline integration is becoming increasingly evident. Consumers' demand for fast and convenient delivery services is constantly increasing, providing a vast incremental market for instant delivery companies such as Flash Delivery. Whether it's fresh food, daily necessities, or electronic products, efficient delivery services are needed to meet consumers' immediate needs.
And with its high-quality service and excellent user experience, Flash Delivery is expected to occupy a larger market share. According to a user survey conducted by iResearch in October 2023 on instant delivery services, the overall satisfaction of users with Flash Delivery based on personal experience is better than the industry average. The proportion of satisfied and very satisfied users reached 82.0%, and both satisfaction and recommendation rates ranked first in the industry.
On the other hand, Shansend's continuous efforts in technological innovation and service optimization have also shown investors its future development prospects. It is reported that Flash Delivery has invested a large amount of resources in technology research and development, and has achieved intelligent order allocation through advanced algorithms to improve delivery efficiency. At the same time, the real-time monitoring system allows users to keep track of the order status at any time, enhancing their trust.
From the perspective of industry prospects, the market space for instant delivery is enormous in the future. According to iResearch's calculation in March, the average annual growth rate of China's instant delivery industry is expected to reach 19.1% between 2023 and 2028, and it is predicted that the overall scale of the industry can increase to 809.64 billion yuan by 2028.
On the other hand, the impressive financial data of Flash Delivery may also confirm that the investors' initial decision was right. Financial data shows that from 2021 to 2023 and the first half of 2024, the revenue of Flash Delivery was 3.04 billion yuan, 4.003 billion yuan, 4.529 billion yuan, and 2.284 billion yuan, respectively; The net profit will turn losses into profits in 2023, achieving 110.5 million yuan. In the first half of 2024, the net profit will be 124 million yuan, a year-on-year increase of 194.08%. Since the fourth quarter of 2022, Flash Delivery has achieved seven consecutive quarters of profitability.
At the same time, the number of orders for Flash Delivery is steadily increasing. From 2021 to 2023, the order volumes for Flash Delivery were 158.6 million, 213.4 million, and 270.7 million, respectively. In the first half of 2024, Flash Delivery completed 138.1 million orders.
Flash Delivery stated that the funds raised from the IPO will be used to further enhance the quality of one-on-one emergency delivery services, improve user experience, and provide users with more efficient and reliable instant delivery services. With the development of the entire instant delivery industry and the trend of consumer upgrading, Flash Delivery, which is committed to providing high-quality services, will have greater imagination space.