Why

Rising cost of labor

Human labor costs five times more the last mile than during the previous 1,000 miles.

Problematic last-mile delivery

Because of issues like theft, using human workers for last-mile delivery can diminish customer satisfaction.

Deliveries not delivered

Many compounds don’t admit delivery personnel so residents have to retrieve packages at relay points.

Market

RMB 338 billion

Size of smart logistics market in mainland China in 2017, up 21.1% over 2016. It is expected to hit RMB 585 billion by 2020.

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