This letter of intent for cooperation comes from SF Express in China. The specific content is that it hopes to introduce drone express technology to the country, take Hong Kong as a pilot to complete the laying of the drone logistics network.
To be honest, after reading this document, Jiang Chen's expression was very strange.
Drone + express delivery, the concept was proposed a long time ago, and was not the first to be founded by Future Ren Group.
Back in June 2013, Matternet, the United States tested drone networks in Haiti and the Domecan Republic.
The drone used can carry 2 kilograms of weight and fly 97 kilometers.
After completing preliminary planning for the drone network, the company will next plan to establish a large international drone transport network and a global supply system for drone accessories.
At the same time, it is also planned to establish a charging base station so that drones can land along the way for charging.
In September of the same year, the delivery drone independently developed by SF Express completed internal testing and conducted trial operation in some areas.
This drone uses an eight-rotor with a flight height of about 100 meters. It has a built-in GPS navigation system. The destination and route can be set by staff in advance. The drone will automatically reach the destination, and the error can be controlled within 2 meters.
However, neither Matternet nor SF Express have been able to promote drone logistics to a widespread popularization.
The former drones seem to be only suitable for poor countries in the third world, while the latter drones are only suitable for poor mountainous areas in the country.
Although drone logistics can significantly improve distribution efficiency and reduce labor costs.
However, due to its limitations due to the bad weather and the inability to avoid human damage during flight, the concept of drone + express has never been realized.
Penglai City is probably the only modern city in the world that has realized drone logistics.
However, the reason why this can be achieved is that the advancement of drone technology is one aspect, but the more critical factor is the public security efficiency of Penglai City.
Not to mention the distance, just look at the news from a while ago: A young man in Guangzhou used a drone to give his girlfriend a mooncake coupon, but was shot down and robbed by the square dance aunt.When the young man found out that he had been 'hijacked', he hurried to ask the aunts for compensation. However, the aunt not only denied that he had shot down the drone, but also said that he was almost injured by the drone...
Not to mention that drone management has always been in a gray area in terms of policy, there seems to be no room for drone logistics to become bigger and stronger in terms of people's sentiment.
About SF Express, we want to introduce Bate series drones from Future Renhe Industrial to complete the laying of the drone logistics network in China.
To be honest, Jiang Chen is not optimistic about their decisions.
However, their offer made it difficult for Jiang Chen to refuse.
For the completion of the layout of the Hong Kong drone logistics network, SF Express’s offer is US$4.5 billion.
Jiang Chen estimated that 500-seat drone terminals should be able to cover all areas of Hong Kong, and to meet the delivery needs of Hong Kong, about 50,000 drones are enough.
According to the production cost of Bate-3 drones, a single drone is only over $3,000, which has an advantage in both technology and price compared to Matternet's $5,000 drone.
With all the plans, the cost of establishing this drone logistics network for SF Express in Hong Kong will not exceed US$200 million.Compared to its $4.5 billion offer, this is almost 125% profit!
Moreover, if the Hong Kong city, as a pilot, proves the feasibility of promoting the drone logistics network to the mainland, SF Express’s next step is undoubtedly to expand the drone logistics network to Shenzhen, followed by the entire Guangzhou, and then...
Think about it, how many cities are there in the entire China?How many express delivery companies are there?
Such a huge market is simply an inexhaustible gold mine!
Your expression tells me that you are very interested.Looking at Jiang Chen's expression, Jiang Shuying smiled with a pursed lips.
That's right, the value of this market is over 100 billion, and I think no company will be uninterested.Jiang Chen nodded from time to time while looking through the documents in his hand.
To be honest, although he didn't understand the details of the cooperation very well, he could understand the prospects of the entire market very well in an instant.
There are 283 prefecture-level cities, 374 county-level cities, and more than ten express delivery companies in China.
Even if each city can only earn $500 million on average, the size of this market is already terrifying.
I am also optimistic about this agreement. No matter whether SF Express can successfully operate the pilot operation in Hong Kong, there will be no risks for us.But I have not agreed to their proposal for the time being.
Why?Jiang Chen looked at Jiang Shuying with interest.
He knew that there must be some reason for her to do so.
Although the offer from SF Express is very attractive, since we have mastered the core technology and are relatively abundant in funds.Why don’t we do this drone logistics ourselves?
Why not do it yourself?
Future Ren Group controls VRstre, a huge virtual reality shopping platform, and integrates several e-commerce companies.
The daily trading volume on VRstre reaches a pretty terrifying number.
With such huge resource advantages, Future Ren Group can develop offline delivery business on this basis.
Users on VRstre, Future Ren Group delivers free shipping!
The adoption of drone delivery technology will greatly reduce the labor costs of the Future Human Group.
SF Express needs to pay 400,000 employees, but for Future Ren Group, this number can be compressed to less than 50,000.
In terms of operating costs, Future Ren Group will first have the advantage.
Hearing Jiang Shuying's words, Jiang Chen thought seriously for a moment.
Do your own logistics?Does our company have management experience in this area?
We don't need to start from scratch.My suggestion is to acquire a ready-made logistics company, integrate its management team, and then reorganize it.In the process of cargo sorting, transportation and delivery, our headquarters will send someone to redesign and copy the Penglai City model.If the trial operation proves feasible, we will fully promote it in the mainland and further promote it to the world!
Before this, Jiang Shuying had obviously made some plans for the layout of this drone + logistics, so she was very confident when explaining to Jiang Chen.
And her words really made Jiang Chen feel moved.
When providing services to others, how can you take over the entire industrial chain and make money by yourself?
What about the risks?Jiang Chen asked the last question he was concerned about.
It will take about $3 billion to complete the acquisition.Then we will gradually cancel the local agency rights, shift the franchise model to offline direct sales, and establish our own delivery outlets in major cities. This work requires about US$1 billion.The cost of taking Hong Kong as a pilot project for drone logistics is US$200 million.
By this calculation, the cost of the entire project is about US$4 billion, and with the financial resources of Future People Group, it can completely withstand this risk.
Very good, I'll ask you for that!Jiang Chen smiled and pointed the documents in his hand.
Since I have decided to do this drone logistics myself, there is naturally no need to read SF Express’s letter of intent for cooperation.
Jiang Shuying smiled slightly and gently lifted the hair in her ears.
Wrap it in me.
To be honest, after reading this document, Jiang Chen's expression was very strange.
Drone + express delivery, the concept was proposed a long time ago, and was not the first to be founded by Future Ren Group.
Back in June 2013, Matternet, the United States tested drone networks in Haiti and the Domecan Republic.
The drone used can carry 2 kilograms of weight and fly 97 kilometers.
After completing preliminary planning for the drone network, the company will next plan to establish a large international drone transport network and a global supply system for drone accessories.
At the same time, it is also planned to establish a charging base station so that drones can land along the way for charging.
In September of the same year, the delivery drone independently developed by SF Express completed internal testing and conducted trial operation in some areas.
This drone uses an eight-rotor with a flight height of about 100 meters. It has a built-in GPS navigation system. The destination and route can be set by staff in advance. The drone will automatically reach the destination, and the error can be controlled within 2 meters.
However, neither Matternet nor SF Express have been able to promote drone logistics to a widespread popularization.
The former drones seem to be only suitable for poor countries in the third world, while the latter drones are only suitable for poor mountainous areas in the country.
Although drone logistics can significantly improve distribution efficiency and reduce labor costs.
However, due to its limitations due to the bad weather and the inability to avoid human damage during flight, the concept of drone + express has never been realized.
Penglai City is probably the only modern city in the world that has realized drone logistics.
However, the reason why this can be achieved is that the advancement of drone technology is one aspect, but the more critical factor is the public security efficiency of Penglai City.
Not to mention the distance, just look at the news from a while ago: A young man in Guangzhou used a drone to give his girlfriend a mooncake coupon, but was shot down and robbed by the square dance aunt.When the young man found out that he had been 'hijacked', he hurried to ask the aunts for compensation. However, the aunt not only denied that he had shot down the drone, but also said that he was almost injured by the drone...
Not to mention that drone management has always been in a gray area in terms of policy, there seems to be no room for drone logistics to become bigger and stronger in terms of people's sentiment.
About SF Express, we want to introduce Bate series drones from Future Renhe Industrial to complete the laying of the drone logistics network in China.
To be honest, Jiang Chen is not optimistic about their decisions.
However, their offer made it difficult for Jiang Chen to refuse.
For the completion of the layout of the Hong Kong drone logistics network, SF Express’s offer is US$4.5 billion.
Jiang Chen estimated that 500-seat drone terminals should be able to cover all areas of Hong Kong, and to meet the delivery needs of Hong Kong, about 50,000 drones are enough.
According to the production cost of Bate-3 drones, a single drone is only over $3,000, which has an advantage in both technology and price compared to Matternet's $5,000 drone.
With all the plans, the cost of establishing this drone logistics network for SF Express in Hong Kong will not exceed US$200 million.Compared to its $4.5 billion offer, this is almost 125% profit!
Moreover, if the Hong Kong city, as a pilot, proves the feasibility of promoting the drone logistics network to the mainland, SF Express’s next step is undoubtedly to expand the drone logistics network to Shenzhen, followed by the entire Guangzhou, and then...
Think about it, how many cities are there in the entire China?How many express delivery companies are there?
Such a huge market is simply an inexhaustible gold mine!
Your expression tells me that you are very interested.Looking at Jiang Chen's expression, Jiang Shuying smiled with a pursed lips.
That's right, the value of this market is over 100 billion, and I think no company will be uninterested.Jiang Chen nodded from time to time while looking through the documents in his hand.
To be honest, although he didn't understand the details of the cooperation very well, he could understand the prospects of the entire market very well in an instant.
There are 283 prefecture-level cities, 374 county-level cities, and more than ten express delivery companies in China.
Even if each city can only earn $500 million on average, the size of this market is already terrifying.
I am also optimistic about this agreement. No matter whether SF Express can successfully operate the pilot operation in Hong Kong, there will be no risks for us.But I have not agreed to their proposal for the time being.
Why?Jiang Chen looked at Jiang Shuying with interest.
He knew that there must be some reason for her to do so.
Although the offer from SF Express is very attractive, since we have mastered the core technology and are relatively abundant in funds.Why don’t we do this drone logistics ourselves?
Why not do it yourself?
Future Ren Group controls VRstre, a huge virtual reality shopping platform, and integrates several e-commerce companies.
The daily trading volume on VRstre reaches a pretty terrifying number.
With such huge resource advantages, Future Ren Group can develop offline delivery business on this basis.
Users on VRstre, Future Ren Group delivers free shipping!
The adoption of drone delivery technology will greatly reduce the labor costs of the Future Human Group.
SF Express needs to pay 400,000 employees, but for Future Ren Group, this number can be compressed to less than 50,000.
In terms of operating costs, Future Ren Group will first have the advantage.
Hearing Jiang Shuying's words, Jiang Chen thought seriously for a moment.
Do your own logistics?Does our company have management experience in this area?
We don't need to start from scratch.My suggestion is to acquire a ready-made logistics company, integrate its management team, and then reorganize it.In the process of cargo sorting, transportation and delivery, our headquarters will send someone to redesign and copy the Penglai City model.If the trial operation proves feasible, we will fully promote it in the mainland and further promote it to the world!
Before this, Jiang Shuying had obviously made some plans for the layout of this drone + logistics, so she was very confident when explaining to Jiang Chen.
And her words really made Jiang Chen feel moved.
When providing services to others, how can you take over the entire industrial chain and make money by yourself?
What about the risks?Jiang Chen asked the last question he was concerned about.
It will take about $3 billion to complete the acquisition.Then we will gradually cancel the local agency rights, shift the franchise model to offline direct sales, and establish our own delivery outlets in major cities. This work requires about US$1 billion.The cost of taking Hong Kong as a pilot project for drone logistics is US$200 million.
By this calculation, the cost of the entire project is about US$4 billion, and with the financial resources of Future People Group, it can completely withstand this risk.
Very good, I'll ask you for that!Jiang Chen smiled and pointed the documents in his hand.
Since I have decided to do this drone logistics myself, there is naturally no need to read SF Express’s letter of intent for cooperation.
Jiang Shuying smiled slightly and gently lifted the hair in her ears.
Wrap it in me.
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