Express delivery has three links and one reaches. The three links refer to STO Express, YTO Express, and ZTO Express. One reaches refers to Yunda Express.

Three private express delivery companies, YTO, ZTO and STO, have successively entered the capital market, among which ZTO is listed in the United States. The listing of Yunda marks that the "three links and one connection" that originated from Tonglu, Zhejiang and are headquartered in Shanghai have gathered in the capital market. "Three links and one delivery" account for half of my country's express delivery market, and are in an absolutely dominant position in the e-commerce express delivery market.

The arrival of three links and one express delivery in the capital market is a milestone for my country’s private express delivery companies. It shows that the efforts and broad prospects of the express delivery industry over the years have been recognized by many parties, and it also means that my country's express delivery industry has reached a new starting point.

Extended information:

Following ZTO, Yunda and YTO, STO Express also announced that starting from October 1, 2018, it will adjust the national express delivery fees to Shanghai. Increase by 0.5 yuan per order. It should be noted that express delivery companies are facing tremendous pressure from rising operating costs. Previously, the "three links and one extension" successively released semi-annual reports, in which operating costs increased by 20% to 40% year-on-year.

The main customers of the three links and one extension are upstream e-commerce companies, which are price-sensitive. E-commerce accounts for a relatively high proportion of the business volume of three links and one extension, reaching more than 70%. As the downstream of e-commerce, express delivery has relatively weak bargaining power. There will be resistance to the adjustment of distribution fees for the three links and one express, and at least the comprehensive promotion will encounter difficulties.

Adjustment of express delivery prices will be a trend. Price increases will bring many challenges to franchised express delivery companies. The prices of some high-quality services may be prioritized and reasonably raised. In addition to raising prices, franchised express delivery companies also need to strengthen cluster collaboration and cluster upgrades, and strengthen linkage with ecological empowerment platforms such as Cainiao Network in aspects such as intelligence and improve service quality.

Baidu Encyclopedia - Cainiao Logistics

China News - "Three Links and One Delivery" 4 express delivery companies gather in the capital market