Focus | Going Head-to-Head with SF Express! ZTO Launches an Instant Delivery and Logistics Sharing Platform; the “Tongda” Group Jointly Steps Up to Strengthen Its Mid-to-High-End Time-Sensitive Services

It has become inevitable for express delivery companies to expand into the mid-to-high-end product segment. The advantage is that it helps control costs, while the challenge lies in delivering high-quality last-mile services amid a growing reliance on crowdsourced delivery networks.

Against the backdrop of a general slowdown in the price war, the express delivery industry has seen new developments.

After three months of trial operations, the global cross‑border instant express logistics sharing platform under ZTO Express… “Kuai Di is Here” has officially launched recently. At present, the service is available in over 30 cities nationwide, including Beijing, Shanghai, Guangzhou, and Shenzhen.

It is reported that, The “Kuai Di Lai Le” product ecosystem is primarily structured around two pillars: first, urban consolidated‑delivery services anchored in local‑life logistics, leveraging air and high-speed rail networks alongside city bus shuttles to provide coverage within 6–12 hours; second, cross‑regional express‑time‑sensitive solutions supported by air and high-speed rail, utilizing the same integrated network of air, rail, and urban bus services to deliver reliable 12‑hour, 24‑hour, and 48‑hour cross‑border delivery options. At the same time, “Kuai Di Lai Le” focuses on interprovincial delivery with a 24‑hour service guarantee—either next‑morning or next‑day delivery.

The reporter found that, as the result of meticulous design by ZTO, “Kuai Di Lai Le” stands out in several ways. On the one hand, its self‑described identity as an “instant delivery and logistics sharing platform” is a novel concept within the express‑delivery industry. On the other hand, from a product‑portfolio perspective, Kuai Di Lai Le targets both intra‑city last‑mile delivery and the mid‑to‑high‑end time‑sensitive parcel market across cities.

Express delivery expert Zhao Xiaomin said in an interview with a reporter that ZTO has launched “The arrival of Kuaidi” is a reflection of the express delivery industry’s broader shift toward high-quality development. Zhao Xiaomin believes that the current primary growth strategies for the Tongda‑style players are twofold: first, ensuring the stability of their core, mainstream business; and second, expanding into mid‑to‑high‑end parcels.

Launched by ZTO Prior to “Kuai Di Lai Le,” on December 30, 2021, YTO announced that its “Yuan Zhundada” service—centered on accelerated delivery times and precise last-mile delivery—would officially launch for customers in January of this year. In November last year, Yunda issued an internal notice announcing that its express‑delivery program had been officially renamed “Zhi Cheng Wang,” and requiring all delivery personnel to handle parcels strictly in accordance with Zhi Cheng Wang’s guidelines: deliver to the recipient’s door with the recipient’s signature; in special circumstances, follow the recipient’s specific instructions for delivery.

Clearly, the Tongda group is shifting to a different competitive dimension.

“Kuai Di is here”—the pricing for high‑end time‑sensitive shipments will be on par with SF Express.

Specifically, ZTO stated that, “Kuai Di Lai Le” is an instant express‑logistics sharing platform launched by ZTO Express, open to external logistics resources. Focusing on the mid‑to‑high‑end time‑sensitive delivery market, it is committed to providing society with ultra‑fast, high‑quality express‑logistics services. The platform adopts an organizational model of “direct‑operated operations plus last‑mile crowdsourced delivery,” builds an instant‑delivery product portfolio based on precise time‑slot management, and leverages digital operations to achieve intelligent, end-to-end process control.

“Kuai Di Lai Le” is an instant express‑delivery logistics sharing platform launched by ZTO Express, open to external logistics resources.

As for “Kuai Di” coming… Regarding the self‑description of an “instant express logistics sharing platform,” Xie Xiaowen, a specially appointed researcher at the China Logistics Association, told a reporter from the Daily Economic News that, in essence, such platforms are information‑driven logistics systems, typically established by IT firms. “Some instant logistics sharing platforms founded by IT companies lack the qualifications of traditional express delivery enterprises. To address this issue and achieve integrated development across information technology, logistics, and business models, partnerships between express delivery firms and these platforms—or the creation of instant logistics platforms led by industry‑leading companies that do hold express delivery licenses—are essential.” As an express delivery company, ZTO’s newly launched platform exemplifies this emerging model.

Xie Xiaowen believes that this newly emerging model addresses the issue of courier‑company qualifications at the source and resolves the longstanding problems of traditional on‑demand shared logistics—namely, its fragmented nature and limited scope for business expansion.

From a product‑portfolio perspective, although Kuaidi has entered both the same‑city delivery and intercity high‑end time‑sensitive‑shipment markets, industry insiders believe it remains fundamentally focused on the mid‑to‑high‑end time‑sensitive‑shipment segment.

Wei Jianhui, a brand retail industry analyst at Analysys, told reporters that previously, ZTO had launched a premium brand. “Star‑Link Time‑Sensitive Service” enjoys the highest priority within the ZTO Express network: it is given top priority for transshipment at sorting centers and for delivery at local outlets, with strict time‑bound commitments for both transit and final delivery to ensure that shipments reach customers as quickly as possible.

Wei Jianhui stated that, drawing on Starlink’s accumulated experience in time-sensitive delivery and ZTO Express’s established brand strength, ZTO is now launching… “Kuai Di is Here” represents a strategic upgrade in ZTO Express’s service‑product transformation, reflecting the company’s efforts to further elevate its product positioning, pursue differentiated growth, and deliver high‑quality delivery services to customers.

“‘Kuai Di is Here’ has launched a new online platform, operating through direct management and franchising at the last mile, leveraging existing high-speed rail and aviation infrastructure to maximize the timeliness of its rapid delivery services,” said Wei Jianhui.

Just Regarding the specific shipping rates for “Kuai Di Lai Le”‑related products going forward, ZTO did not provide a direct response. However, a city‑level contact for “Kuai Di Lai Le” told a reporter from the Daily Economic News that its publicly listed prices are comparable to SF Express’s time‑sensitive services in the same tier. That said, when order volumes are high, they can help negotiate discounts. “As for pricing, the project has already been launched; it’s just that the mini‑program won’t be fully operational until the end of the month.”

Is the “Tongda Group” going head-to-head with SF Express?

Whether it’s same-day delivery or the mid-to-high‑end time‑critical parcel market, ZTO cannot avoid direct competition with SF Express if it hopes to capture a larger share of the market.

However, in Wei Jianhui’s view, “Kuai Di Lai” differs significantly from instant‑delivery platforms such as SF Same‑Day.

To capture a larger share of the market, ZTO cannot avoid direct competition with SF Express.

Wei Jianhui stated that, from the perspectives of service product types, delivery times, and network structure, The “Kuai Di Lai Le” product is narrowly defined as a courier‑type service, with delivery times ranging from 6 to 48 hours. Its network structure combines centrally operated, company‑owned core nodes with an affiliate‑based last‑mile delivery model. In contrast, instant‑delivery platforms such as SF Same‑City adopt a broader focus, offering on‑demand delivery across various urban lifestyle categories, typically with turnaround times of 30 to 60 minutes. Their networks are centrally managed and controlled, with riders either operating under their own contracts or outsourced.

“ZTO’s ‘Kuai Di is Here’ can be seen as an effort to deliver the kind of high‑efficiency delivery service that SF Express offers, reinforcing differentiated growth and thereby enhancing ZTO Express’s overall service‑brand image,” said Wei Jianhui.

However, “Kuai Di is Here” adopts an organizational model that combines “direct-operated operations” with “last-mile service crowdsourcing.” Could this, to some extent, impact the development of the related business?

In this regard, Zhao Xiaomin believes that, “What model ‘Kuai Di’ adopts isn’t the key; the real issue is how to design an effective online incentive system and how to integrate it with the existing broader network. “If we were to stick entirely to the old franchise model, it certainly wouldn’t work,” said Zhao Xiaomin. “Since these related businesses are only just getting off the ground, we’ll need to reassess the strengths and weaknesses of our current organizational structure after a year.””

Another veteran industry insider told the reporter that, at present, “The ‘Kuai Di’ model” faces the primary challenge of delivering mid-to-high‑end time‑sensitive parcels with high quality, even when relying on last‑mile crowdsourced delivery. Its key advantage is that this approach facilitates cost control.

The mid-to-high-end market is not easy to navigate. In 2018, YTO launched “Chengnuo Da,” a service targeting the mid-to-high-end market. According to data on its official website, by the end of 2019, the “Chengnuo Da” express delivery network had expanded to nearly 1,000 directly operated and managed service outlets.

But The development of “Chengnuo Da” has not been smooth. In October 2019, following reports that “Chengnuo Da” was allegedly being dissolved, an informed source told a reporter from the Daily Economic News that the “Chengnuo Da” team had undergone large-scale layoffs, and other business units within the group were also cutting staff. At the time, YTO Express stated publicly that “Chengnuo Da” was, as planned, entering a brand‑franchising phase in select cities, with operations authorized to franchisees of YTO Express. The company also indicated that it would focus in the future on same‑city time‑sensitive deliveries and instant‑delivery services, aiming to enhance service quality and customer experience.

With “History is a teacher,” so why are the Tongda‑style express delivery companies, including YTO and ZTO, now successively targeting the mid‑to‑high‑end time‑sensitive parcel market?

The aforementioned senior industry insider told the reporter that YTO, upon launching… “At the ‘commitment‑to‑delivery’ stage, the market is still relatively immature. In the long run, there will certainly be a market—but just how large it will be remains an open question,” he noted. He believes that, in expanding the future market for mid‑ to high‑end express services, relevant companies could explore partnerships with e‑commerce platforms. “At present, e‑commerce platforms largely set the pricing for delivery services. To further grow the market for mid‑ to high‑end time‑sensitive shipments, it will be necessary to encourage these platforms to offer a broader range of delivery options, allowing consumers to choose freely. This way, if consumers want to use mid‑ to high‑end time‑critical services, they can simply pay the price difference themselves.”

In any case, the TTD group’s move to enter the mid-to-high-end market with differentiated products has become an inevitable trend.

Zhao Xiaomin stated that it has become inevitable for relevant express delivery companies to expand into the mid-to-high-end product segment. “At present, courier companies must first safeguard their core business. As the price war intensifies to a certain point, it has become increasingly difficult for them to keep pace with current competitive demands, prompting the need to recalibrate strategies and diversify their product offerings.”