My fintech empire.

Chapter 1193 [Another big news]

Compared with SF Express’ urgent response, other logistics companies seemed to be slow to react. In fact, it’s not that they didn’t pay attention to this matter, but that other logistics companies were still hesitant about this new thing.

To put it bluntly, I want others to explore the way first. I don’t dare to be the first to try it, so I plan to wait and see.

Shunfeng is obviously the first company to choose to take the plunge.

On the morning of Wednesday, September 9, Oriental Express and Kunpeng Technology, which had just been established for a week, made big news again. The two companies announced that they had reached a strategic cooperation agreement and facilitated a super large order.

The heads of both companies attended today's press conference and publicly conducted the signing ceremony.

Orient Express invested a huge sum of RMB 210 billion to purchase 5000 "Kunpeng-5B" drones from Kunpeng Technology to build a modern large-scale commercial drone freight logistics system.

People from all walks of life were shocked by this order. They directly ordered 5000 aircraft right from the start. This move by Oriental Express is in line with the consistent style of Qunxing. If they do something, they will do it in a big way and fill up the order right from the start.

How can ordinary companies afford such a large investment? Even industry giants like Shunfeng cannot afford such a large investment.

However, for Oriental Express, which has exclusive franchise qualifications and a galaxy lineage, although this is shocking, it is also reasonable. In the future, this sub-industry will be the only one in the country to provide large-scale commercial drone transportation services. However, the transportation capacity of 5000 "Kunpeng-5B" drones may not be enough.

You should know that the express delivery industry has made a prediction this year, predicting that the national express delivery volume is expected to exceed 2016 billion pieces for the first time in 300, with an average of nearly 23 pieces per person. The industry's growth rate will exceed 50%, and the frequency of express delivery used by users is still increasing. The entire industry is still in a rapidly growing incremental market state.

The country's daily express delivery volume now exceeds 1 million, and the market size ranks first in the world.

It can be said that the carrying capacity of 5000 Kunpeng-5B drones alone is definitely not enough. The maximum load capacity of this type of drone is 1.8 tons. Even according to the extreme value of the theoretical upper limit, a rough calculation of the total carrying capacity of 5000 sorties is about 9000 tons. Assuming that the total daily carrying capacity can reach 3 tons, the annual carrying capacity is about 1095 million tons.

If all express parcels under SF Express are transported by this type of drone, based on the company's current daily shipment volume, the total capacity of 5000 Kunpeng-5B drones will not be able to meet the company's shipment needs.

What’s more, there are more than just SF Express logistics companies in China, and its market share has not reached a monopoly level.

Moreover, the roughly calculated annual transport capacity of tens of millions of tons for 5000 Kunpeng-5B drones is only theoretical data. The actual situation will certainly not reach this scale, because there will always be a part of the drones under maintenance and it is impossible for them to work at the same time. Therefore, 5000 drones are definitely not enough, and additional purchases will inevitably be made in the future.

The decision by Oriental Express to go this big right from the start was not made on a whim. It was the result of a professional and rigorous economic feasibility study based on various data indicators such as market scale effect and exclusive franchise qualifications. The result was that the cost of large-scale commercial drone freight logistics is lower than the current traditional logistics model, and the efficiency is also improved.

Next-day delivery is already fast enough, but Oriental Express can be even faster and can deliver on the same day.

Consumers place an order online on the same day, the manufacturer ships the goods in Shanghai, and the delivery address is in Pengcheng, a thousand kilometers away. Oriental Express can airfreight the goods over on the same day, and consumers can receive the express delivery on the same day. Orders placed on the same day will be delivered on the same day.

With such high efficiency and lower cost than traditional logistics, its competitiveness is self-evident.

There are also some remote areas where traditional logistics cannot deliver to you. Oriental Express can also deliver to you, which can also bring new growth points for logistics companies.

All of this has been calculated in detail, and the competitiveness index can be quantified, so we dare to go so big, because we are 100% sure that this model can work.

The reason why Fang Hong asked Oriental Express to choose the "B2B" model is to quickly open up the market. Directly connecting with consumer terminal business is too inefficient. First, you need to let consumers across the country know you, which requires a lot of time and cost.

But it is much easier to connect directly with the enterprise side. You just need to deal with those enterprises and you can open up the market directly. Promising to only provide transportation services to third-party logistics companies and promise to do only this one thing and never compete with them for profits is also an important factor.

It is worth mentioning that Fang Hong was able to push Oriental Express to achieve its goal. The outside world did not know that he actually wrote an additional document to the military. This document was actually the decisive factor because it directly led to a major change in the military's attitude towards the commercial use of large drones.

The material written by Fang Hong only expressed one point of view: quasi-reserve force!
In peacetime, the large drones under Oriental Express are used to transport various cargo and express parcels. In wartime, they can be transformed into an air force that can be requisitioned by the military at any time.

If it is used as a transport unit for war materials, it can go directly to the front line to perform logistics transportation tasks without any changes.

If it is used as an offensive weapon, no modification is required. By replacing the cargo pod with missiles or aerial bombs, it can become an offensive drone with "reconnaissance and strike" capabilities to quickly support the front line.

In other words, once the military's requisition order arrives, if Dongfang Express has 5000 drones, it means that it has a reinforcement force of this scale ready to rush to the front line at any time. What if Dongfang Express has 50000 drones? What kind of terrifying reinforcement force would that be?

Even if the wartime production efficiency is maximized, there is still an obvious window period in time. No matter how fast the production capacity is, it cannot be as fast as the ready-made on-call supply. When war really comes, there is no need to elaborate on how important the rapid response of modern warfare is.

It was precisely because Fang Hong wrote this material which was approved by the military that Oriental Express was able to succeed so quickly.

Oriental Express also has a top-secret piece of information, which is that the military actually has the backend management authority over the company's drones. This authority is non-existent in peacetime, but in wartime it can directly bypass Oriental Express to deploy all drones in operation, focusing on a quick response. Only afterwards will Oriental Express receive the news of its requisition.

This is top secret, and the number of people who know about it inside Oriental Express can be counted on one hand.

Another important factor that led to the military's approval is that it is not appropriate to have thousands or tens of thousands of such drones in the military.

First of all, if you really do this, you will definitely be accused of military expansion in the international community. Thousands and tens of thousands of these things are really scary, especially the neighbors will be scared. But if you let Dongfang Express engage in civilian commercial logistics and transportation, you can't say that I am engaged in military expansion. If you say so, I can also refute it with reason and evidence. Our ancestors invented gunpowder but used it to set off fireworks, which shows that they have always loved peace. On the contrary, you learned it but used it as a weapon to kill people.

Secondly, such a large quantity is very expensive, and logistics and maintenance all cost money. But if it is an asset under Oriental Express, then there is no need to allocate a penny from military expenditure. It will all be borne by Oriental Express. When it is really needed, all it takes is a requisition order. As the Internet says, this is equivalent to getting it for free. How can it not be great?
Coupled with favorable factors such as the ability to promote economic development, technological progress and the transformation and upgrading of high value-added industries, Oriental Express was able to be implemented at the speed of light.

……

(End of this chapter)