Caixin
Sep 21, 2022 07:28 PM
BUSINESS

China’s Courier Sector Delivers Growth in Per Order Revenue

What’s new: China’s major courier service providers posted growth in revenue per order in August, which an analyst attributed to the scaling back of a sectorwide price war and improvement in the order fulfillment process.

Last month, Yunda Holding Co. Ltd., STO Express Co. Ltd. and YTO Express Group Co. Ltd. reported that their revenue per order grew 27.8%, 18.46% and 14.66% year-on-year to 2.62 yuan, 2.31 yuan and 2.44 yuan, respectively, according to their announcements.

Overall, the average unit price for the whole industry was up 0.3% year-on-year in August to 9.4 yuan, marking the fifth straight monthly rise, as the number of orders jumped 4.9% year-on-year to 9.43 billion, according to statistics from the State Post Bureau.

The background: The growth of China’s courier service providers rode the rise of the e-commerce industry in the country, led by players such as Alibaba Group Holding Ltd. and JD.com Inc. This led to intense competition among the couriers.

Liu Ruocong, a senior logistics analyst at China Merchants Securities Co. Ltd., credited the rise in revenue per order to government intervention in the form of industry price regulation.

In January, the State Post Bureau released draft rules to standardize delivery companies’ pricing practices in an effort to promote healthier competition in the industry.

Contact reporter Ding Yi (yiding@caixin.com) and editor Bertrand Teo (bertrandteo@caixin.com)

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