Exploring the Growth and Profitability of China's Personal Delivery Market

China's personal delivery market is experiencing significant growth, yet profitability remains elusive for many companies involved in this competitive sector. The rise of on-demand delivery services has been fueled by a large labor force and a robust internet ecosystem, enabling logistics companies and e-commerce platforms to expand their offerings. According to a report by Deutsche Bank analyst Jessie Xu, released on June 10, 2025, BingEx has pioneered a dedicated courier service model in China, employing one delivery person for each order. This innovative approach allows users to transport items like suitcases or cakes across town using the FlashEx app, which has become synonymous with rapid delivery in Mandarin. The brand, also known as 'Shan Song,' signifies 'delivery in a flash' and has gained considerable market recognition, resembling the way 'Kleenex' is used to refer to tissues.

FlashEx has reportedly begun to achieve operating profits since the third quarter of 2023, a feat that sets it apart from competitors who largely continue to operate at a loss. Xu noted that 'most of its competitors, including subsidiaries of larger companies, are struggling financially.' Alibaba, for instance, has also entered the on-demand delivery space with a channel on its Taobao platform, promising deliveries in as little as 30 minutes.

Despite competition, some companies are still making strides in profitability. SF Holdings, a major logistics player, reported that its intra-city delivery segment accounted for over 3% of its total revenue last year, with a revenue increase of 22% year-on-year.

However, the overall on-demand delivery market is projected to grow at a slower pace of 13% annually through 2028, down from 20% growth between 2019 and 2023, according to Xu. This deceleration is attributed to various factors, including increasing consumer demand for personalized delivery options and the expansion of Online-to-Offline (O2O) retail models.

As of the end of 2024, FlashEx employed 2.8 million riders and served over 100 million registered customers across 295 cities. Despite the impressive user base, BingEx's shares have fallen over 50% this year due to intensified competition and subdued consumer spending in China. Xu emphasized that the company has strategically exited less profitable business lines to focus on unit economics, which she believes will lead to sustainable growth and profitability in the long term.

In conclusion, while China's personal delivery market is expanding, the path to profitability remains challenging for many players. Market dynamics continue to evolve as established companies like Alibaba and JD.com compete aggressively in this space, underscoring the intricacies of navigating consumer demands and operational efficiencies in the fast-paced delivery economy.