JD Logistics Poaches Delivery Service Contract from SF Holding
Zhao Chenting
/SOURCE : Yicai
JD Logistics Poaches Delivery Service Contract from SF Holding

(Yicai Global) Dec. 12 -- JD Logistics recently struck a deal to provide logistics services to 163, the e-commerce platform run by NetEase Inc. [NASDAQ:NTES], as it looks to expand its delivery network and take on more orders from outside companies.

The JD.com Inc. [NASDAQ:JD] unit poached the services contract from SF Holding Co. [SHE:002352].

"I often buy things from JD.com," William Ding, NetEase founder, said at a sub-forum of the recent World Internet Conference. "The most important reason for that, apart from the fact that products are genuine, is the efficient logistics service."

In addition to 163, JD Logistics has been taking more and more orders from other online malls not operated by its parent company since it began to run independently from the e-commerce stalwart at the end of April.

"163 is a very important customer for us. Companies like this are a big source of our external orders," Wang Zhenhui, chief executive of JD Logistics, said on the sidelines of the 2017 Global NewGen Logistics Summit. His firm's external order business it now profitable, he added, noting that it currently brings in annual revenue of CNY30 billion (USD4.5 million). Wang hopes JD Logistics total income will reach hundreds of billions of yuan in the next five years, with the external orders unit chipping in half.

"JD Logistics advocates alliance, rather than monopolism -- and supports decentralization," Wang continued. "We hope to work with everyone for common growth and to progress the entire industry and society." The concept of opening up is not only applicable to brand owners and retailers, it matters to the logistics sector too, he added.

Wang also disclosed at the summit that JD.com will open an unmanned delivery site in the near future, and JD Logistics will set up a staffless warehouse in Shanghai early next year, and make it available to the whole industry so partners can exchange and learn together to promote sector development.

JD.com put the world's first whole-process unmanned warehouse into operation in Shanghai this year, and it now has a daily processing capacity of more than 200,000 packages, the company said. It aims to lower costs by 30 percent within 10 years.

The e-commerce giant has already spent 170,000 hours testing drones, and has partnered up with light goods van maker SAIC Maxus Automotive Co. and state-owned Dongfeng Motor Corp. to develop unmanned trucks and test them in special zones with permission from traffic management authorities.

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Keywords: E-COMMERCE , JD.com , LOGISTICS , Unmanned Warehouse