Focusing on same-city freight, Lightning Dog Technology cuts in from the B-end to accelerate the C-end business of the third and fourth lines

Lightning Dog Technology was established in April last year, focusing on the field of freight in the same city, doing is an "online + offline" logistics service platform, through SaaS services to integrate market sources, warehouse resources, loading and unloading resources and vehicle resources, etc., to solve the problems of asymmetric vehicle source information, high vehicle vacancy rate, reduce the warehouse vacancy rate, and finally achieve the purpose of "customers spend less money, drivers earn more money".

In the same city freight track, Lalala completed a $300 million Series D financing in February this year, led by Hillhouse Capital and Sequoia Capital. In July last year, Fast Dog Taxi received a strategic investment of US$250 million led by Huaxin Investment, followed by Cainiao Network and China-Russia Fund.

Unlike lala and fast dog taxis, which focus on the 2C market, the main revenue of Lightning Dog Technology comes from the toB business. That is, according to the requirements of the enterprise to customize the corresponding SOP services (routing planning, cargo sorting, on-site management, cargo insurance, etc.), and for the enterprise to equip project personnel to follow the car, line, deal with customer abnormalities and other matters.

This image comes from Lightning Dog Technology and is licensed for use

There are also intra-city freight companies that focus on 2B business in China, but because of blind opening of the city, a large number of advances have led to a break in the capital chain. Liu Bin, CEO of Lightning Dog Technology, told Chuangbang that Lightning Dog Technology has been developing steadily and has not blindly expanded its business on a large scale. In order to ensure the health of capital flow, the company adjusts its strategy and achieves self-sufficiency, from the early stage can do long-term business, to the later stage only to do monthly business, after the reform, although the company's business volume has declined, but the company almost achieved zero capital advance.

In terms of market prospects, Liu Bin introduced that with the rapid development of China's e-commerce, the order volume of China's urban distribution industry is also constantly breaking through. In 2012, the number of orders in China's urban distribution industry was only 800 million, and in 2015, the number of orders for urban distribution in China reached 2.77 billion. Since 2015, the annual growth rate of China's urban distribution industry has exceeded 50%, and by 2017, the number of orders in China's urban distribution industry has increased to 8.92 billion, an increase of 59% year-on-year. By the end of 2018, the number of orders in China's urban distribution industry exceeded 10 billion, reaching 12.4 billion.

One of Lightning Dog Technology's marketing strategies is to adopt a zero-commission model for drivers and give profits to customers and platform drivers. It is worth mentioning that Lightning Dog has launched a consolidation mode for customers who are not very strict in terms of transportation timeliness and have high requirements on transportation costs, so as to meet the problem of idle transportation capacity during the trough period of drivers.

At present, Lightning Dog tests the water 2C business, most of the freight platforms focus on serving first- and second-tier cities, Lightning Dog Technology's toC for the development of third- and fourth-tier cities and rural areas, 2C business has been tested in individual cities, and more cities will be opened in the follow-up to provide convenience for third- and fourth-tier cities and rural cars.

In terms of expanding revenue, Lightning Dog Technology has set up a variety of value-added services to meet the diversified needs of drivers and customers by creating financial products and derivative service products around drivers. For example, drivers can buy cars on Lightning Dog's online platform, and the company allows drivers to buy the right vehicle at the best price. In addition, Lightning Dog Technology has reached a national strategic cooperation agreement with the Industrial and Commercial Bank of China, where drivers can purchase cars in installments and even 0 down payments. For example, Lightning Dog will also provide financial products to drivers, and through cooperation with insurance institutions, transfer insurance services such as car insurance, cargo insurance, and personnel insurance to online operations, giving drivers and cargo owners preferential treatment and convenience.

The company currently has more than 180 people and has set up branches in 14 provincial capitals and central cities across the country. In terms of financing, Lightning Dog Technology has obtained a round of financing of 100 million yuan last year, and the investors are Dongxu Group and Dongding International. A new round of financing has been opened, which will be mainly used for system research and development and expansion.

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