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Logistics Crowdsourcing Platform BBT Raises $10 Million, Eyeing Overseas Markets

“Compared with having couriers claim orders themselves, assigning orders to them allows the company to plan the optimal route for each order and improve efficiency.”

| Photo by Andrew Kambel on Unsplash.

Kr-Asia is all about actionable insights for entrepreneurs. And through this post, you’re about to find out:

Which model is better for a logistics crowdsourcing platform, assigning orders or letting couriers claim orders themselves?

BBT (帮帮兔), a logistics crowdsourcing platform recently announced a $10 million worth of Series A round.

Founded in March 2015, Guangzhou-based BBT is a logistics crowdsourcing platform powered by its big data system and LBS technologies. With the help of a system that assigns orders and plans the best route for each order automatically, the platform supports features like one-click ordering, smart order assignment, customer service, service rating and insurance in multiple languages. Orders are handled immediately upon placement and tracked throughout the process.

According to the company, the number of registered couriers on its platform has exceeded 50,000. As of now, it has handled altogether 5 million orders and managed to turn a profit from each of them.

BBT will use the newly raised funds to consolidate its market share in China, expand its presence to overseas markets like Hong Kong, Taiwan, and Southeast Asia, and improve its management of business clients.

Asset-light model:

Image credit to BBT.

“Cash flow problems in the wake of the cash-burning and subsidizing frenzy are holding the industry back,” said ZHAO Jiaqi, BBT’s CEO. In the light of that, the company has opted for an asset-light model and placed particular emphasis on improving its operation with technologies.

How can a company glue users if it stops offering subsidies? For BBT, the answer is targeting business clients and offering delivery services to them. Among its clients are SF Express’ Hong Kong branch, McDonald’s, PCCW, etc. It’s also serving small merchants like flower shops and bakeries.

“Assign Orders” vs. “Claim Orders:”

Screenshot from BBT.

The average delivery distance of BBT is less than 10km but longer than 3km, which is the average distance of food delivery. Therefore, service fee per delivery is relatively high.

Different from other platforms, BBT has been assigning orders to couriers. Zhao Jiaqi thinks that if the platform allows couriers to claim orders by themselves, it could not arrange optimal route for them but only complete orders. In contrary, if the platform assigns orders to couriers, it can take many factors into consideration, including time limits, routes and grades of courier, to work out the best delivery plan. And under such plan, couriers can significantly improve their efficiency.

Team:

Zhao Jiaqi, CEO of BBT, has 18 years of experience in innovative industrial technology, business and operation. He was Technology and Project Director of Sina and was in charge of R&D and international brand marketing. Liu Lingyu, COO of BBT, has 13 years of experience in logistics, human resource management and operation. Xie Jieming, CTO of BBT, has been engaged in information technology industry for 17 years and been specialized in technology development. He served as Technology Director of Sina.

Writer: Janine

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