The Chinese online retail firm Jingdong has thrown open its logistics network to both other an online business and consumers. Businesses and people in Shanghai, Guangzhou, and Beijing can now ship parcels domestically using their shipping system by either accessing the JD.com app or by using the social-messaging app WeChat. At some point in the future they will offer this to everybody in mainland China.Jingdong has a nationwide network of warehouses, trucks, and vans that they use to deliver parcels purchased on the JD.com website. They will now be competing with Chinese shipping firms such as SF Express and ZTO Express, Inc.
Their logistics network can reach almost every person in the nation and over 90 percent of their orders are delivered in just one day or less.The chief executive of JD Logistics, Zhenhui Wang, said that they have been looking to leverage their national logistics network for a while now. JD.com is competing with the other Chinese largest online retailer, Alibaba, and extending their logistics network to consumers and businesses is an effective way of doing so.Jingdong has a logistics network that includes 15 logistics parks and over 500 warehouses placed strategically around mainland China. They also have close to 7,000 stations for pickup and delivery.
Their fleet includes nearly 250,000 delivery vehicles and they are increasingly delivering parcels via drones.When someone orders a product from Jingdong, 95 percent of the time it will show up at their door having been shipped from one of their warehouses. It will also be delivered in one of their vehicles by a driver wearing one of Jingdong’s uniforms. They had already been offering their logistic network to some corporations, including Unilever, so extending it to other businesses and consumers was the logical next step.A spokesperson for JD.com stated that they are one of very few logistics providers in China. She also stated that nobody but Jingdong has the same reach or speed as her company does. Opening up their logistics network to others will vastly speed up getting parcels delivered across the nation.