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PITCH
Fast like the wind, Mr Feng’s army of mobile-technology-enabled “courier-warriors” provide reliable on-demand intracity delivery for individuals and businesses; and is Hangzhou’s No. 1 player.
WHY?

Slow delivery, damage risk

Before the use of mobile technologies, last-mile and intracity delivery in China was inefficient, disorganized.

Costly logistics infrastructure

Building an in-house delivery team is a costly investment, and often unaffordable, for e-commerce firms.

Demand boost from e-commerce

In 2014, Beijing alone produced about 1 million orders daily for intra-city express delivery.

MARKET

RMB 800 billion

Current value of China’s B2B intracity logistics sector

This market is expected to grow 20% yearly into 2020; while the B2C segment is worth around RMB 400 billion, forecast to grow 15% annually.

PRODUCT
Mr Feng provides intracity delivery of food, fresh flowers, auto parts, medicines, documents, big-size articles, etc., via its website and WeChat account. Booking options include 30-minute delivery, one-hour, same-day and next-day delivery. For its B2B users, Mr Feng provides delivery services for e-commerce platforms and small retailers.
Mr Feng provides intracity delivery of food, fresh flowers, auto parts, medicines, documents, big-size articles, etc., via its website and WeChat account. Booking options include 30-minute delivery, one-hour, same-day and next-day delivery. For its B2B users, Mr Feng provides delivery services for e-commerce platforms and small retailers.
BUSINESS MODEL
Selling quality and efficient service as its competitive edge, Mr Feng focuses on strengthening personnel management and logistics capabilities to achieve secure, quick delivery. It uses internet technologies (e.g., LBS, analytics) to connect demand, delivery management, staff management and central monitoring, translating into cost-savings and greater systematization versus traditional models.

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Positioning Shift

Mr Feng originally positioned itself as a last-mile delivery company, providing short-distance delivery services mainly for on-demand takeout apps.

Subsequently, it expanded its services to intracity delivery, taking on orders in e-commerce and social commerce; increasingly shifting from B2C to B2B.

Mastering the supply chain

Mr Feng has established warehousing, distribution and delivery capabilities, hence securing its own supply chain to better control the entire workflow.

Income model

Currently, Mr Feng derives its income from commission and service fees.

TIMELINE

  • Launch
  • Growth
  • Recent Developments
  • Future Plans
  • 2014 - Mr Feng launched; secured seed and Series A fundings; expanded to dozens of cities.

    Read in detail:

    The launch

    April, the project Mr Feng kicked off.

    Expansion

    November, expanded its service to dozens of cities.

    December completed delivery of over 100 million items.

    Fundings

    February, raised 7-digit-RMB seed financing from Tisiwi Ventures and Matrix Partners China.

    October, raised 7-digit-USD Series A financing from Lightspeed China Partners and Matrix Partners China.

  • 2015 - Series A+ financing of US$13 million led by Matrix Partners China; peak of expansion, adding partnerships with Ele.me, Taodiandian, Line0; 100,000+ daily orders.

    Read in detail:

    Expansion

    Partnerships with leading on-demand food delivery apps such as Ele.me, Line0 and Taodiandian.

    April, size of full-time delivery personnel reached 5,000 hires.

    September, hundreds of delivery trucks put into service; daily delivery orders exceeded 100,000; operating in 20+ cities.

    Fundings

    October, raised US$13 million in Series A+ financing led by Matrix Partners China, with participation from Lightspeed China Partners.

  • 2016 - Series B funding of US$16 million; pivoted to intracity delivery with B2B focus; downsized business amid dearth of VC financing.

    Read in detail:

    Products and services

    January, intracity logistics service launched.

    Fundings

    January, secured US$16 million Series B investment from Lightspeed China Partners, Matrix Partners China, Daosheng Capital and Puhua Capital.

    Challenges

    As venture capital flows in China dried up amid a market downturn (the “capital winter”), Mr Feng found itself having to tighten its belt, mainly by downsizing operations and headcount (from a peak of nearly 10,000 staff).

  • 2017 - 8-digit USD Series C investment from Daosheng Capital, Jolly Information.

    Read in detail:

    Fundings

    April,won 8-digit-USD Series C financing by Daosheng Capital and Jolly Information Technology.


  • Recent Developments

    Headcount has been scaled down from the thousands to hundreds.

    Armed with an in-house distribution center, warehousing, logistics capabilities and supply chain management; established an intracity network.


  • Future Plans

    Open up, expand its new retail business line to 15–20 cities by end-2017.

    Reopen its previously closed service stations in early 2018.

    Expand into the Middle East with 3,000 delivery staff.

Updated: 08/2017

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