(Yicai) Sept. 25 -- Chinese express delivery stations are rapidly adopting unmanned delivery vehicles amid mounting cost pressures and the roll out of promotional discounts by manufacturers, Yicai learned from interviews with a number of industry insiders.

Although driverless vehicles still require human assistance at certain stages of operation, they make up for the shortcomings of manual labor, said He Xiaoqin, head of a courier outlet in Tianshui, northwestern Gansu province. For example, they can run nonstop, electricity is cheaper than fuel, they can handle flexible routes and even deliver at night. That makes the service faster and reduces costs.

It costs around 62 percent less to deliver a parcel with an autonomous vehicle rather than using a human courier at CNY0.06 (USD0.01) per package, said Li Li, head of another express delivery station.

Not only does the autonomous driving technology equipped in self-driving delivery vans help lower costs, it is also maturing quickly, said a business director at Neolithic, a developer of autonomous vehicles. This makes them very effective for the labor-intensive ‘last five kilometers’ of parcel delivery and is a key reason why courier hubs are increasingly willing to use them.

Changes in the payment model have also made self-driving vans more attractive. Some developers have launched a monthly subscription model, rather than requiring upfront payment, lowering the entry barrier for customers.

“We have expanded our unmanned fleet significantly,” Li said. “Last year, we only had 14 self-driving vehicles but now we have 35."

As of the end of July, courier outlets across China were using around 15,000 unmanned delivery vehicles, according to industry research platform Tongqu Youdao. Of these, more than 60 percent were ordered after manufacturers launched special promotional offers in the second quarter.

Shenzhen had 320 unmanned logistics vehicles on its roads last month, according to a recent report by the Shenzhen Intelligent Connected Transportation Association. Together, they roamed 230,000 kilometers, handled 750,000 standard parcel deliveries and 150,000 fresh produce orders, and generated an estimated commercial value of CNY7.6 million (USD1 million).

Editors: Tang Shihua, Kim Taylor