JD.com, a Chinese online retailer, is staking a claim in the country’s very competitive market when it comes to package delivery, by opening its a logistics network to parcels shipped by businesses and consumers. The move announced on October 18 will first roll out for customers as well as business customer in Shanghai, Guangzhou and Beijing, allowing them to send items via the company’s app or via pickup requests through the messaging app WeChat.Alibaba Group Holding’s main e-commerce rival expects to expand the service in order to cover business and a residential deliveries between two points in China.
In turn, this move would turn their network of trucks, vans and warehouses that the company uses to move goods sold on their platform into a more broad delivery service which features delivery, and as a result compete with companies such as SF Express and ZTO Express, and have a similar model to FedEx Crop. and United Parcel Service Inc.According to the company, their network can reach 99% of the Chinese population, and more than 90% of their orders can be delivered in one day or less. The Chief Executive of JD Logistics made a statement noting that this move marks the next step in leveraging JD’s nationwide network that they build over the past 10 years.The company logged $17.7 billion in net revenue in the second quarter, but they are spending more on technology and highly automated warehouses.
Their network includes over 500 warehouses, close to 7,000 pickup and delivery stations, 15 logistics parks, and 250,000 delivery and transportation vehicles, which includes some that are operated by partners. In addition, despite the fact that JD.com does not own any planes, they ship goods through commercial airlines and they also deploy drones for remote rural provinces in China.The company already sells its distribution and a logistics services to corporate customers like UnileverPLC, and also provides courier services for businesses that seek access to the company’s network. However, selling delivery services to parcel customer enables the company to cut its per-package costs, spreading the cost of running the network across still more shipments.
Sources of article: https://www.youtube.com/channel/UCj1O__aZW_05RdTCL8E3kUA
According to Shervin Pishevar, monopolies like Amazon, Google, Apple, Microsoft, and Facebook limit the growth of small startups. This adversely impacts innovation. It results in the centralization of new ideas. The whole economy suffers in this situation.
The monopolies described by Shervin Pishevar have been an enemy of capitalism since the advent of the global economy. Nevertheless, they grew strong enough to set the stage for central banks. Alone, these events are not the most desirable circumstances. However, combined with nearly absolute power the result is a stifling of the economy.
These organizations have even demonstrated an ability to circumvent first world governments. Shervin Pishevar compels one to consider, that with so much power at their disposal, how can small startups expect to compete, let alone turn a profit. Notice that the monopolies discussed here are all US companies. The US is home to small business. This illustrates the magnitude of the global domination that big businesses have over the world.
The technology sector becomes a bigger part of the global economy with each passing year. Innovation has shown to be critical to technological advancement. This sector does not stand still. One can only speculate what might happen if it did. It is a foregone conclusion that computers will become faster, homes smarter, and cars more automated. These occurrences are as secure as when oil was compared to gold. Technological innovation is so impactful that philanthropic organizations dedicate their efforts toward digital interconnectivity. This includes the most remote regions of the third world.
As important as technology is to the economy and innovation is to technology, ideas are the starting point. Without ideas, innovation might only be limited to speed. All the world could be still sitting in front of high-performance PC’s without smartphones if it were not for idea men like Steve Jobs. This is where Shervin Pishevar shines. Small business is the breeding grounds for ideas. Yes, large corporations have formidable research and development departments, but they have an underlying agenda. Corporations need to make administrative decisions that blind them to possibilities that small businesses find apparent.