As e-commerce firms set up their own logistics systems, a bottleneck in their development has developed from the soaring cost of hiring couriers. This situation has led to unmanned aircraft being considered as another option to meet their delivery needs, said a report on Sina.cn, citing Jack Ma, founder of Alibaba.
Ma disclosed that the primary reason he had avoided entering the logistics sector was the large amount he’d need to spend on payroll as well as the huge costs involved in hiring couriers.
One deliveryman reported that the number of orders has been declining since the threshold for free-delivery orders was raised to 99 yuan (US$16). The base salaries for couriers are low, with their real money coming from the parcels they deliver. If their commissions from the delivery service didn’t go up after the threshold did, then they would find it difficult to stay in business.
Both the remarks from Ma and the deliveryman reflect the fact that the soaring costs incurred by e-commerce companies in setting up their own logistics systems have become a bottleneck in their development, as these enterprises aim to expand whereas couriers just want to earn enough money to stay afloat. … (read more)