Perhaps due to the stimulation of Pinduoduo and Jitu Express, Alibaba launched "Cainiao Express", and the three links and one achievement became the loser

Recently, at the 2023 Global Smart Logistics Summit, Alibaba's Cainiao Network announced the launch of its own quality express delivery business: Cainiao Express. This means that Cainiao Network will compete directly with its franchised express delivery companies such as YTO, STO, ZTO, Yunda, etc.

It is reported that Cainiao Express has been built over six years and has been upgraded from a delivery business serving Tmall Supermarket to a national express delivery network. It focuses on quality services such as half-day delivery, next-day delivery, door-to-door delivery and night collection. It provides five 100% commitments in nearly 300 cities across the country, including late arrival, compensation for damage, compensation for failure to deliver to the door, interception in transit and change of destination in transit.

Cainiao said that the launch of Cainiao Express was based on a deep insight into consumer needs and a long-term layout for the logistics industry. Cainiao Network said that with the upgrading and diversification of e-commerce consumption, consumers have higher and higher requirements for express delivery services, which require not only fast and punctual delivery, but also flexibility and convenience. However, traditional express delivery models often have problems such as low efficiency, irregular services, and poor user experience. Therefore, Cainiao Express is committed to providing better and more affordable quality express delivery services through technological innovation and management optimization to meet the diverse needs of consumers.

However, the launch of Cainiao Express also exposed the contradictions and conflicts between Cainiao Network and its franchised express delivery companies.

According to statistics, China's express delivery business volume reached 110.58 billion pieces in 2022, of which more than 80% were completed by franchised express delivery companies under Cainiao Network. While these franchised express delivery companies have taken on a large number of orders and cost pressures, they are also facing problems such as declining service quality, increasing user complaints, and shrinking profit margins. Especially during e-commerce promotions such as Double Eleven, franchised express delivery companies often provide poor services, fail to deliver goods to customers' homes, lose or miss items, etc., causing complaints from users.

As a platform, Cainiao Network seems to be unable to deal with these problems. On the one hand, Cainiao Network requires franchised express delivery companies to improve service quality and efficiency and comply with platform rules and standards; on the other hand, Cainiao Network must protect the interests and development space of franchised express delivery companies and avoid excessive intervention and deprivation of their autonomy. This dilemma has led to a trust crisis and cooperation barriers between Cainiao Network and franchised express delivery companies.

What is more serious is that franchised express delivery companies have fallen into a dilemma of passive dependence and inability to resist. Liu Qiangdong, founder of JD.com, once mentioned in CCTV's "Dialogue" column: "Cainiao Network is essentially building a data system on several express delivery companies, and most of the profits of several express delivery companies will be sucked away by Cainiao Logistics. Express delivery companies also know this, but now they have no ability to leave. If you don't listen to it, you will be kicked out, and 50% of the parcel volume may be gone." This means that franchised express delivery companies have lost the right and space for independent operation and have become vassals and tools of Cainiao Network.

Analysts pointed out that the launch of Cainiao Express can be seen as an improvement and transformation of its own logistics capabilities, and also a warning and challenge from Cainiao Network to its franchised express delivery companies.

It is believed that the launch of Cainiao Express is another important move by Alibaba in the field of logistics, and also a response strategy for it in the competition in the e-commerce market. As the industry traffic reaches its peak, the competition in the e-commerce market has shifted from the incremental market to the stock market. At the same time, emerging e-commerce platforms such as Douyin, Kuaishou, and Pinduoduo have begun to rise, and Alibaba is facing unprecedented pressure and challenges. Therefore, returning to the creation of consumer experience has become Alibaba's only choice. In the e-commerce industry, the key to consumer experience lies in the terminal delivery link, and the Tongda Group can no longer meet Alibaba's requirements. On the one hand, the franchise model makes it difficult for express delivery companies to carry out refined management of franchised outlets; on the other hand, the low-profit model also makes it difficult for SF Express, YTO Express, and STO Express to improve service quality. Finally, Pinduoduo's success in Jitu Express has also largely stimulated Cainiao to launch its own express brand.

Therefore, Cainiao Express can not only improve consumers' express delivery experience and satisfaction, but also create strong competitive pressure on franchised express delivery companies, forcing them to improve their services or exit the market. In this way, Alibaba can seize more market share and user reputation through its own high-quality express delivery, thereby responding to challenges from other e-commerce platforms.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.