Express delivery industry giants abound, what did Flash Express (FLX.US) do right with their "one-on-one urgent delivery model"?

In the express delivery industry, despite the presence of many industry giants, new models continue to emerge and occupy a place in niche markets. Among them, FlashEx is a representative of the "one-on-one instant delivery" niche, finding unique value points in the industry segmentation competition and gradually becoming a leading brand in the vertical sector. After ten years of development, FlashEx (FLX.US) recently successfully went public on the NASDAQ market in the United States. In this IPO, FlashEx issued a total of 4 million American depositary shares (ADS) at a price of $16.5 per share. Based on the issue price, FlashEx raised $66 million through this IPO, with the company's IPO market value exceeding $1.1 billion. On the first day of trading, the company's stock price opened 13.21% higher at $18.68 triggering a circuit breaker. From establishment to listing, what did FlashEx do right with its "one-on-one express delivery model"? One-on-one delivery was born out of market demand In the express delivery market, same-city instant delivery distinguishes itself from traditional express delivery companies through its unique niche. Before the emergence of "one-on-one instant delivery", same-city instant delivery was not a priority for express delivery companies. Most express delivery companies were cost-oriented, not distinguishing between same-city and inter-city services, often resulting in next-day delivery, sacrificing timeliness and service quality. Same-city urgent delivery filled the gap in the traditional express delivery industry, meeting customers' needs for quick and accurate delivery. As a representative of the "one-on-one instant delivery" field, FlashEx, as the industry leader, has gradually become synonymous with the industry. Over the past decade, FlashEx has continuously focused on one-on-one urgent delivery services, solving user pain points and building business and platform barriers brick by brick. As of the first half of 2024, FlashEx has approximately 2.7 million registered couriers in 295 cities nationwide, providing instant delivery services to users. Today, FlashEx still maintains a steady high-speed growth. According to early investors in FlashEx, during their initial research on the company, they found that FlashEx's initial users were mostly through word-of-mouth referrals, reflecting the actual needs of many users. Research from iResearch shows that platform delivery timeliness (55.5%), delivery service experience (41.8%), and platform delivery prices (35.8%) are the top three factors users consider when using instant delivery services. Among them, more specialized instant delivery, distinguished from general instant delivery, better meets consumers' new demands for faster delivery times, higher delivery security, and better delivery service experience. It was learned that FlashEx chose the "one-on-one instant delivery" service model, where FlashEx couriers only serve one customer at a time, from pickup to delivery, providing faster, more certain, and safer services. Compared to the group purchase model in same-city instant delivery, group purchases focus more on scale, efficiency, and ultimate cost efficiency. In the "one-on-one instant delivery" model, FlashEx couriers only serve one order at a time, truly providing point-to-point service, offering a superior service experience in terms of speed, safety, personalized needs, and service quality, thereby forming FlashEx's core competitiveness as an industry leader. Based on this, FlashEx's "one-on-one instant delivery" also meets various specific instant delivery scene requirements, including urgent deliveries during important moments, sending gifts to important people, and delivery of important items. For example, for important items, the one-on-one specialized delivery mode ensures the safety of important items; for important moments, FlashEx can achieve an average of seven minutes to the door and 27 minutes to deliver instant delivery services across the city. Being the preferred choice for more and more users, FlashEx still has ample room for further development As FlashEx continues to deepen its focus on "one-on-one instant delivery," the platform now has 88.9 million registered users, making FlashEx the increasingly preferred choice for users in same-city instant delivery needs. Behind this, FlashEx has demonstrated multiple competitive advantages within the industry. For example, as a pioneer in the industry of instant one-on-one urgent delivery, FlashEx has significant first-mover advantage, with capital-driven demand continuously increasing; FlashEx has strict selection and management of delivery personnel, ensuring higher service quality compared to the industry; with a high brand awareness, FlashEx also has strong competitiveness in the market. In summary, FlashEx's "one-on-one instant delivery" model, with its high brand recognition, quick response, meeting timeliness requirements, high service quality, high flexibility, and customization, continues to be the preferred choice for users in instant delivery. To date, FlashEx's value is not only reflected in end users but also in B-side institutions and businesses. Currently, FlashEx's "one-on-one instant delivery" can achieve "24/7 online, citywide delivery," greatly helping operators reduce costs, increase efficiency, enhance competitiveness, and even transform business models. FlashEx is the fastest in the industry in terms of pickup, delivery, and delivery times. On average, each order is at least 30 minutes faster than competitors, with greater certainty. This is essential for urgent delivery needs at critical moments, high-temperature and refrigerated items, and high-end brands that require premium services. Today, in areas such as document and gift delivery, high-end dining, cakes, flowers, FlashEx has become the first choice for many users, and its service radius is constantly expanding. Currently, FlashEx has established partnerships with clients in various industries, such as finance, tourism, dining, fast-moving consumer goods, medical care, and internet, to meet personalized and premium delivery needs in various business scenarios. It is worth noting that as residents' incomes continue to rise and consumers' overall consumption concepts evolve, the demand for delivery timeliness and service quality among consumers is increasing. The scale and popularization of instant specialized delivery services continue to deepen, and users' willingness to actively use instant delivery services is significantly increasing. At the same time, users' acceptance of high-value delivery needs is gradually rising.From the perspective of delivery demand trends, at the B end level, with the continuous expansion of categories, customers' requirements for fulfillment timeliness and service quality have increased; while at the C end level, the new generation of consumers and the "lazy economy" have also promoted consumers' high-demand for instant delivery services and increased reliance on services.According to the research conducted by iResearch in October 2023, 70.4% of surveyed users believe that they actively use instant delivery platforms more frequently compared to before 2022. Among them, 21.9% of consumers use instant delivery services more than 10 times per month, and the percentage of consumers who use instant delivery services 1-10 times per month is as high as 84.1%. Over 80% of consumers expect deliveries to be completed within 1 hour, and almost 40% of consumers expect deliveries to be completed within half an hour. In terms of industry trends, according to iResearch reports, the instant delivery industry in China has been in a high-speed development stage in the past 5 years, with a compound annual growth rate of 19.8% from 2019 to 2023, reaching a market size of 338.5 billion yuan in 2023. According to iResearch estimates in March 2024, the annual average growth rate of the Chinese instant delivery industry from 2023 to 2028 is expected to reach 19.1%, and the overall market size is predicted to increase to 809.64 billion yuan in 2028, showing high-speed development potential. In response to this, early investors in Flash Exprees have also expressed continued optimism about the company, as the rapid development of instant retail continues in the coming years, Flash Exprees will continue to grow. According to Flash Exprees' future plans after going public, the funds raised from the IPO will be used to expand its customer base, increase market penetration, build brand image, and invest in technology and research and development. With the continuous optimization of its "one-to-one instant delivery" model, and better services for users, the company's existing advantages will be further consolidated, helping the company achieve long-term development.