Most of China’s express delivery giants lost money in 2020 despite delivering significantly more parcels, as a new entrant backed by Pinduoduo exacerbated an ongoing price war that has squeezed margins, reported Caixin.
The four listed Chinese courier firms that had reported by April 30 lost a total of RMB 480 million ($74.16 million) in the first quarter, an analysis of their quarterly earnings shows.
J&T Express, a new entrant backed by group-buying giant Pinduoduo, has ratcheted up pressure on the sector, using a money-losing strategy to aggressively expand its foothold.
STO Express was particularly hard hit. Its net profits were down 97% year-on-year on operating revenue of RMB 21.6 billion, down 6.6%. Meanwhile Best Express actually lost RMB 0.25 for each parcel it delivered.