China’s large labor force and internet ecosystem have supported fleets of couriers delivering an increasing range of products on demand. U.S.-listed BingEx has taken a unique strategy by dedicating one delivery person for each order, becoming “a pioneer in the dedicated courier service industry,” Deutsche Bank analyst Jessie Xu said in a June 10 report that initiated coverage on the stock with a buy rating. By using the Chinese company’s app, someone in China can have their suitcase transported across town, or have the courier buy a specific cake and deliver it to a party. The business operates under the brand “FlashEx” or “Shan Song,” which means “delivery in a flash” in Mandarin. The brand’s name has become a local way to describe the service, just like Kleenex. FlashEx “started recording positive unit operating profit from 3Q23 and has been profitable since then,” Deutsche Bank’s Xu said, pointing out that most of its competitors still operate at a loss in the one-on-one courier business. On-demand delivery has become a competitive market that logistics companies and e-commerce platforms have expanded into, often with heavy subsidies and piling several orders onto one courier. But even Alibaba expects consumers will want to buy on demand, and in the last several weeks has rolled out a channel for people to buy food, clothes and other products on e-commerce …
