Alibaba-Backed Yunda Express Joins Efforts to Block Indonesian J&T Express
Zhang Yushuo
DATE:  Oct 23 2020
/ SOURCE:  Yicai
Alibaba-Backed Yunda Express Joins Efforts to Block Indonesian J&T Express Alibaba-Backed Yunda Express Joins Efforts to Block Indonesian J&T Express

(Yicai Global) Oct. 23 -- Alibaba-backed Yunda Express has joined other Chinese delivery firms by prohibiting its franchisees from cooperating with Southeast Asian rival J&T Express ahead of China's Double 11 shopping festival.

Yunda Express does not allow its franchisees to join or become an agent for J&T Express and requires them to return all J&T Express parcels to the senders, the 21st Century Business Herald reported yesterday. Firms that violate the rule will be fined from CNY1,000 (USD150) to CNY5,000, the Shanghai-based firm said on Oct. 19.

Li Jie, the founder of Oppo Indonesia, set up J&T Express based on the Chinese phonemaker's sales network in the Southeast Asian country, according to public data. The company began its China operations in March after acquiring a controlling stake in Shanghai-based Longbang Express last year. It cooperates with e-commerce players such as Pinduoduo, Dangdang.Com, Suning.Com, and Mogu.Com, as well as Douyin.

STO Express and YTO Express have issued similar bans to hinder the rival's progress on their home turf, the same report wrote, citing the firms' franchisees.

That may not ruin its success. "The industry was not optimistic about J&T Express in the beginning, but now its development exceeds expectations,” said a delivery franchisee. “Pinduoduo has offered support to J&T Express in business and will participate in its new round of financing."

J&T Express, much like its major client Pinduoduo, seizes market share rapidly by handing out subsidies but it has received many complaints from consumers, Cailian Press reported, citing an informed source.

Last year, parcels on Alibaba Group Holding’s e-commerce platforms made up over 40 percent of China's total, while that of Pinduoduo was more than 30 percent, and JD.Com had nearly 6 percent, per statistics from China’s State Post Bureau and express firms’ announcements.

Editor: Emmi Laine
 

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Keywords:   delivery,express,Yunda,J&T Express,YTO