786 Drone and Express (2/2)

”Why?” Jiang Chen was intrigued by her decision.

He knew she must have some reason for this.

”Although SF Express's offer is very attractive, we have the core technology, and we have the cash flow. Why don't we do it ourselves?”

[Why don't we do it ourselves?]

Future Group controlled VRstore, a huge virtual reality shopping platform that integrated the ecommerce giants. Daily trading volume on the VRstore already reached an astronomical figure. With such a huge resource advantage, Future Group could fully develop the offline delivery service on this basis.

Users could shop on the VRstore, and Future Group would deliver!

The use of drone delivery technology would greatly reduce the labor costs of Future Group. SF Express had to pay salaries for 400,000 employees, but for Future Group, this figure could be reduced to less than 50,000.

In terms of operating costs, Future Group had an absolute advantage.

When he heard Xia Shiyu say this, Jiang Chen thought about it for a moment.

”Do the logistics by ourselves? Does our company have management experience in this area?”

”We don't need to start from scratch. My advice is to buy a logistics company, integrate its management team then restructure it. In the process of sorting, transporting, and dispatching goods, our head office will send people to redesign and replicate the model of Penglai City. If the trial operation proves to be feasible, we will fully promote it on the mainland and further promote it to the world!”

Prior to this, Xia Shiyu apparently had a plan for the development of this ”Drone + Logistics”, so she had full confidence in her explanation.

Jiang Chen was convinced too.

Providing service for other people would definitely not be as lucrative as integrating the entire industry chain?

”What about the risks?” Jiang Chen asked the last question he was concerned about.

”The completion of the acquisition will cost about 3 billion US Dollar. Then we'll gradually cancel the local agency rights, turn the franchise model into direct operations, and set up our own outlets in major cities. This work will probably require an investment of 1 billion US Dollar. The use of Xiangjiang as a drone logistics network pilot has a cost of 200 million US Dollar.”

By his calculations, the cost of the entire project was about 4 billion US Dollar. With the financial resources of Future Group, this risk could easily be managed.

”Well, you have my full support!” Jiang Chen smiled.

Since they decided to engage in this drone logistics network, the letter of intent from Shunfeng Company was naturally ignored.

Xia Shiyu smiled and combed her hair behind her ear.

”I got it.”