UU runs errands and enters the freight track

On April 17, the beta version of UU freight was officially launched, and UU launched a new attempt in the freight track, committed to building a professional freight platform, providing high-quality freight services, launching vehicle delivery, large and small express delivery, etc., to provide users with one-stop freight services.

In March last year, Cargo Lala entered the same city errand industry, and now UU errand has also begun to try to enter the freight track. Why do many Internet platforms seek development around the same city errands and freight at the same time? Can UU Freight deliver a beautiful answer sheet on the freight track?

01

Low gross margins

90% of the profit is passed on to the customer

"At present, UU errand distribution business is mainly small pieces, in order to further supplement business scenarios and provide users with full-scene distribution services, UU freight came into being, whether it is large or small, users can easily solve the distribution needs through UU errands." On May 7, Qiao Songtao, the founder of UU errands, said in an interview with a reporter from China Logistics and Procurement magazine.

Previously, Qiao Songtao publicly stated the purpose of entering the freight industry on his personal social platform: UU Freight is to break the existing "unspoken rules" of the entire industry and maximize the interests of users and drivers. In view of the chaos of big data "killing ripeness" in the industry, create a different company with low gross margin.

It is understood that on the driver's side, many drivers earn less than 4,000 yuan a month, and they have to pay nearly 600 yuan in membership fees, but in fact, they have less than 3,500 yuan, which is not counting the cost of fuel. Qiao Songtao said, "In my chats with many masters, I found that many of them have their own big jobs, such as fixed warehouses and fixed lines. Offline through the freight platform to take orders, just to have more income. ”

On the user side, many platforms in the freight market have the phenomenon of "killing ripe prices". Specifically, the pricing displayed on the page when placing an order is actually in the range of ranges, such as minivans, the price is 1.9~2.9 yuan/km. Moreover, the platform does not display the specific pricing amount or pricing standard, which means that there is still room for operation in the background.

"When UU has pricing power, we will definitely make the price transparent and the charges transparent." Qiao Songtao bluntly said that UU Freight practices the operation concept of warmth, service and security, and gives more profits to users and drivers; It is necessary to ensure that users will never suffer losses and maintain the lowest price in the same industry. It is necessary to let users know that UU freight is professional, cheap, reliable, and worry-free, and there is no need to worry about it.

It is understood that UU Freight has made the following commitments, UU Freight's service fees are lower than the industry average standard, so as to improve the income level of drivers in the industry and enhance their sense of gain; As long as the user finds that the price is higher than other freight platforms after placing an order in UU Freight, UU Freight will compensate for the difference in coupons and give additional coupons. At the same time, the "million guarantee" is launched, that is, each order provides cargo damage protection, which not only ensures the interests of the shipper, but also reduces the burden of the driver.

In the future, UU Freight will gradually expand to the whole country, adhere to long-termism, and be a professional freight platform with "low gross profit", and currently prepare a welfare subsidy of 100 million. Within one year of launch, the gross profit will be controlled within 5%, and the long-term profit will not exceed 10%, and 90% of the profit will be transferred to the driver master and user groups, and more profit concession measures will be implemented to achieve "good drivers, good service, and good income". At the same time, UU Freight adheres to technological innovation and uses digital and intelligent technology to open up various business scenarios, so that more and more ordinary consumers can more intuitively feel the convenience brought by technological innovation to daily life, and improve the income of more drivers and masters, creating more flexible employment opportunities for the society.

02

Two-way empowerment

Provide full-scene delivery services

"Relying on the huge user base, rich supply-side resources and technology development advantages of UU errand platform, UU Freight will effectively integrate social capacity resources and build a huge capacity reserve. At the same time, with the help of mobile Internet, big data and artificial intelligence and other technologies, an intelligent freight platform is built to realize real-time intelligent scheduling of various vehicle types, and provide cheap, reliable and million-dollar professional freight services for the majority of users and merchants. ”

"UU runs errands to try to enter the freight track, but also to take advantage of its advantages in the field of instant logistics, with lower cost and higher entry efficiency." On May 10, Hong Tao, director of the Institute of Business Economics of Beijing Technology and Business University, said in an interview with a reporter from China Logistics and Procurement magazine that from a professional point of view, whether it is a cargo lala into the same city errand industry, or UU errands into the freight track, it has the nature of cross-border operation.

"UU freight and UU errands are the same, although they seem to be two tracks, but in fact, they are essentially the same, they are both ends of the supply, there is a demand side and a supply side, which belongs to the bilateral network model." Qiao Songtao said that there are many merchants among our users, and the merchants themselves are a rigid need, and any store needs to go to the delivery service. Just like a restaurant or supermarket, you can usually use errands for small items and freight for large items, because the procurement of ingredients or the purchase itself is the same channel.

In addition, UU has better scenarios and more insurance policies, such as loading and unloading in large scenarios in freight, which can form strategic synergy with errands. After UU freight was launched, UU errands helped the handling business inside, and it was also bursting orders every day, and many shippers and drivers placed orders to use errands to do handling. In the future, we will gradually complete the combination lock, electronic lock, including the whole process of vehicle tools are equipped.

"Judging from the current operation situation, UU freight is much easier than UU errands." Qiao Songtao believes that there are three main reasons: First, UU has a user base, and the users themselves have a volume at the beginning. Second, UU products have obvious advantages on the driver side, and UU users are basically from online, and they can use the crowdsourcing operation mode to acquire customers and promote. Third, because the errand is a short distance, it is necessary to consider many factors such as timeliness, routes, order density within three kilometers, and freight does not need to consider these, a city's platform orders can be directly pushed to 10 kilometers and 15 kilometers, and the scale effect is not as strong as running errands, and its users are not like running errands, a user has hundreds of orders a day, and a user has an average of three or four orders a month, which is a completely different way to play.

It is understood that the UU freight business has been open to the whole country at this stage, and the service has been opened in Henan Province and Shaanxi Province, and it is planned to gradually open the national business in May. According to background data, UU Freight has successfully attracted more than 20,000 drivers to register within 5 days of its launch.

"UU freight is a new field, although it has the nature of helping, but after all, it is a different business, and it is necessary to explore differentiated development, accelerate digital transformation, and form its own characteristic advantages." Hong Tao analysis suggests that UU freight should make efforts from three aspects: first, accelerate digital transformation, explore the commanding heights of digital operation, and avoid homogeneous operation; The second is to form a freight business featuring help, which is its advantage and its characteristics; The third is to closely link UU errands and UU freight business to form a competitive advantage, and form the advantage of "precision service" through system development and systematic construction, which also makes its objects more sticky to follow the development of UU. (This article was published in the 10th issue of China Logistics & Purchasing magazine in 2024)