2.7 million riders, so that ＂flash＂ is no longer science fiction？

Same city delivery, when was the last time you used it?

Recently, BingEx Limited started PDIE (investor education before trading), which is regarded as an important step before IPO.

As of June 30, 2024, Flash disclosed that it had about 2.7 million registered riders.

If the listing is successful, it means that 2.7 million registered riders will hold up an IPO.

According to the prospectus, in the first half of 2021 -2024, the revenue of flash delivery reached 3.040 billion yuan, 4.003 billion yuan, 4.529 billion yuan and 2.284 billion yuan respectively, and the corresponding net profit was-291 million yuan,-180 million yuan, 110 million yuan and 124 million yuan.

This means that since 2023, Flash will begin to turn losses into profits.

However, the media also found that the reason for turning losses is not the increase in business income, but the increase in government subsidies.

In the prospectus, Flash said that the profit in 2023 was mainly due to the increase of government subsidies, which increased other income from 9.2 million yuan in 2022 to 74.32 million yuan, and the operating profit related to the operating conditions was only 11 million yuan.

According to the data of the third party iResearch, according to the revenue in 2023, Flash Delivery is the largest independent express delivery service provider in China, with a market share of about 33.9%.

According to the prospectus, unit economic benefit and replicable network are the core competitive advantages of Flash, which enables the company to continuously expand its scale and order volume and improve its profitability.

Compared with other instant delivery platforms, Flash delivery has said that its biggest feature is to focus on "one-on-one delivery".

This means that a courier is responsible for the whole service process from the sender to the recipient, and a courier can only take one order at a time, and will not take other orders until the current order ends.

With such exclusive service, can you really open the blue ocean of distribution in the same city?

At the same time, at present, giants have cut into the same city distribution, especially after running errands. What challenges will there be for some enterprises without giant resources?

What challenges will be faced after the flash IPO to the United States?

In this regard, Sina science and technology Luo Ning and Shu Le had some exchanges, and this monkey thought:

Users may not like the exclusive "social currency" such as "personal service", but how much it is necessary to make urgent delivery frequently.

In fact, there is still a demand for distribution in the same city. Just to meet this demand, the technology needed is still "sci-fi", which cannot be solved by riders.

In the field of labor-intensive express logistics, it is difficult to reduce the high labor cost only by simple digital management and flat channels.

As a new track, the business in the same city requires higher manpower density and frequency, and it is more difficult to solve it with traditional management.

Distribution in the same city is still in the stage of land reclamation, whether it is a giant or a start-up, its market development is just entry, and there are not many resources available for logistics in different places.

The whole scene of logistics in the same city has not been opened, which is limited to simple running errands or moving, similar to better matching some long tail demands through the network front desk.

However, channel flatness is still not enough to solve the problems of cost and frequency.

Now, market share and monthly living are actually a kind of self-satisfaction.

Any logistics in the same city is faced with the problem of solving the scene of tapping the incremental market and increasing the frequency of user consumption.

The best way is to carry out more optimal solutions in artificial intelligence, big data and unmanned vehicles, so that manpower can play the highest role in the lowest configuration, and relying on equipment such as unmanned vehicles, there are more scenarios.

However, at present, these solutions are too sci-fi

The blue ocean of distribution in the same city is not only a virgin land, but also needs to take root for a long time, waiting for the real wind.