Fengchao charges for free. Is that just money?

 Fengchao charges for free. Is that just money?

Shanghai Central Huayuan community is the first community in Shanghai to stop using Fengchao. On May 15, the community resumed the delivery mode of home delivery.

In fact, before 2017, the owners were all in this way of delivery. At that time, the working people in the owners often clashed with the time of receiving express delivery, and the expanding Fengchao express cabinet just settled in, which solved the problem of temporary storage of express delivery for free.

In recent years, the geometric growth of express delivery volume is the driving force for the courier to improve their income. Many couriers are willing to pay Fengchao with 3 to 4 cents, without informing the owners in advance to deliver the packages to the express cabinet, so as to improve the delivery volume of the packages, and the revenue has doubled. The express cabinet has almost become the lazy cabinet of the couriers.

This makes the owners of many communities around suffer from running between home and express cabinets, and also makes some middle-aged and elderly people uncomfortable with their intelligent interaction. But think of the couriers not easy, we all agreed to tolerate.

But on April 30, Fengchao express cabinet changed from free to charged, and the balance between the three was broken.

Expansion leads to loss! Charge to cover the loss?

Convenient service or market expansion

According to He Jian, Fengchao entered the community under the banner of free, so the community only charged a lower site fee for it. According to a 2017 contract he presented, the annual venue fee for each express cabinet is 4700 yuan, with an average daily fee of less than 13 yuan.

Through the way of oral promise of free, Fengchao express cabinet has spread rapidly all over the country and become the largest enterprise in express cabinet industry within five years. With the expansion, it is a huge loss. According to the report, Fengchaos net loss in 2019 reached 781 million yuan, with a net loss of 245 million yuan in the first quarter of this year. Fengchao executives have said that Fengchao is unable to provide free services to the owners while paying high venue fees.

He Jian, director of Shanghai Zhonghuan Huayuan community industry committee: if you can go to shareholders for losses, if you say that an enterprise will collect money from consumers if it loses money, will it give consumers dividends if it makes profits?

A number of communities including Shanghai Zhonghuan Huayuan posted notices to suspend the use of Fengchao express cabinet.

It seems to be a common business model of Internet economy in recent years to attract users through free, expand at the same time of loss, and charge for the site immediately. But its hard for consumers not to worry about the unilateral charging by a big one without fear.

What is the future of the industry?

On the night of May 15, Fengchao issued an open letter to users, apologized for the inadequate communication and opinions between itself and users, and adjusted the user service accordingly. In addition to making it clear that the enterprise will assist the courier to get the users consent before putting the items into the cabinet, it will also extend the free storage time from the original 12 hours to 18 hours, but the charging standard has not changed.

During the novel coronavirus pneumonia epidemic situation, the State Post Office issued three notices in February, April and May respectively, requiring all localities to define the public properties of intelligent express cabinets and express terminal comprehensive service places, and provide supporting measures such as land use and financial subsidies. Good policies, on the one hand, promote the development of express cabinet industry, on the other hand, of course, will also have an impact on the consumption habits of the public.

In 2019, the total volume of express business in China will reach 63.5 billion, and it is expected to reach about 70 billion in 2020, which means that express companies must also improve efficiency and workload. The development of express cabinet enterprises may be an indispensable link, which is also the fundamental reason for the competent departments to promote the development of the industry.

Xie Xiaowen, special researcher of China Logistics Society: on the one hand, they should be supported; on the other hand, they should not have the idea of lazy people. Once the public resources are occupied, it is impossible to charge for the seats. We need to force high-quality development to explore new business models.

Also on May 15, the rookie post station, which is also engaged in the business of intelligent express cabinets, promised to the outside world that it would not charge consumers and would keep it for free no matter how long it was stored. This policy remains unchanged.

Perhaps, Fengchao, which charges for its huge losses, should also think about why there are peers who are not afraid of losses?

Yansong theory

And consumers are afraid that they will pay a certain fee when they get convenience. So this period of time is an open discussion, negotiation and game. Maybe this is a new starting point. The era of the development of express cabinets is coming.