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 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.

He Jian, director of Shanghai Zhonghuan Huayuan Industry Committee: there are relevant provisions in the law that are required to be delivered to us, forcing a consumer who does not need to use the express cabinet to have a contractual relationship with Fengchao cabinet, which belongs to the overlord clause.

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.

Overcharge seems imperative

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.

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.

On the evening of May 16, Zhonghuan Huayuan issued a statement, saying that although there is a certain difference between the free storage time of 18 hours and the 24 hours in the appeal, on the premise that the option before the express delivery into the cabinet is given to the user, the industry committee did not further replace the user who chose Fengchao cabinet to strive for the right and responsibility of the charging policy. After research and discussion, the owner committee decided to resume the use of intelligent express cabinets in the community from May 17, 2020. The express station of Zhonghuan Huayuan will also be opened and put into use recently.

Yansong theory

During this period of time, it is actually a good thing to discuss or even oppose the Fengchao charging. It is this amplified voice and attention that make many people start to think about the feasibility space of this mode and the next step. Will also make the governments management departments and market players start to think about what to do?