Ever ordered something online and had it arrive at your door in under an hour? In China, this isn’t just a luxury—it’s becoming a way of life. The personal delivery market is exploding, fueled by a massive workforce and a tech-savvy population that expects instant gratification. But here’s the kicker: while the demand for on-demand couriers is skyrocketing, only a handful of players are actually making money. Why? Let’s unpack the fast-moving world of China’s delivery scene and figure out who’s cashing in—and who’s just spinning their wheels.
The Rise of On-Demand Delivery in China
China’s urban centers hum with activity, and the delivery industry is no exception. From food to fashion, consumers want it all, and they want it now. The country’s massive labor pool and advanced internet ecosystem have created the perfect storm for delivery services to thrive. Apps connect couriers with customers in real-time, delivering everything from a single cupcake to a suitcase across town. It’s convenience on steroids, but the economics? That’s where things get tricky.
I’ve always found it fascinating how China’s delivery market has turned something as simple as dropping off a package into a cultural phenomenon. It’s not just about speed—it’s about meeting the consumer exactly where they are. But with fierce competition and razor-thin margins, not every company is celebrating.
The One-to-One Delivery Revolution
One company, known locally as Shan Song or “FlashEx,” is rewriting the rules. Unlike traditional delivery models that pile multiple orders onto one courier, FlashEx dedicates a single rider to each order. Need a specific cake delivered to a birthday party? They’ve got you covered. Forgot your laptop across town? A courier will zip it over in a flash. This dedicated courier model is what sets them apart, and it’s paying off.
“FlashEx is a pioneer in the dedicated courier service industry, focusing on personalized, high-quality delivery.”
– Industry analyst
According to recent reports, FlashEx turned a profit starting in late 2023 and hasn’t looked back. That’s no small feat in an industry where most players are bleeding cash to keep up with demand. Their secret? A laser focus on unit economics—making each delivery profitable rather than chasing volume at all costs. It’s a bold move, and one that’s caught the eye of investors.
The Competitive Landscape: Winners and Losers
The on-demand delivery space is a battleground. Major players like JD.com and Meituan are throwing their weight around, but they’re not always winning. JD.com, for instance, recently launched a campaign to compete head-on with food delivery giants, yet their “new initiatives” reported losses in early 2025. Another player, Dada, which started as a supermarket delivery service, was absorbed into JD.com and saw its operating losses climb to 2.16 billion yuan last year.
Then there’s SF Holdings, a logistics titan with a smaller on-demand delivery unit. While it only accounts for about 3% of their revenue, this segment grew by 22% last year, with profits doubling to 132 million yuan. Not bad for a side hustle, right? But the real question is: can these giants keep up with the specialized, customer-focused approach of companies like FlashEx?
- FlashEx: Profitable since Q3 2023, with a focus on one-to-one delivery.
- JD.com/Dada: Struggling with losses despite heavy investment in on-demand services.
- SF Holdings: Growing steadily but a smaller player in the on-demand niche.
- Meituan: A food delivery giant facing losses in new delivery ventures.
It’s a mixed bag. The companies that prioritize efficiency and customer satisfaction seem to be pulling ahead, while those relying on subsidies and scale are stuck in the red.
Why Personal Delivery Is a Game-Changer
Personal delivery isn’t just about getting a package from point A to point B. It’s about creating an experience. Imagine ordering a last-minute gift and having it hand-delivered within the hour. That’s the kind of service that turns customers into loyal fans. The rise of Online-to-Offline (O2O) retail—where online orders are fulfilled in real-time offline—is driving this trend. Food delivery, grocery runs, and even clothing purchases are now expected to arrive faster than you can say “express.”
Analysts predict the on-demand delivery market will grow by 13% annually through 2028, down from 20% between 2019 and 2023. While that’s a slight slowdown, it’s still a massive opportunity. The catch? Personal, one-on-one courier services only make up 4-5% of the market. But with a projected 10% annual growth rate over the next three years, this niche is one to watch.
| Delivery Type | Market Share | Growth Rate (2025-2028) |
| One-on-One Courier | 4-5% | 10% annually |
| Traditional Delivery | 95-96% | 13% annually |
Perhaps the most interesting aspect is how this shift reflects changing consumer habits. In a world where convenience is king, personalized delivery is the crown jewel.
FlashEx’s Winning Strategy
FlashEx’s success didn’t happen by accident. With 2.8 million riders serving over 100 million customers across 295 cities, they’ve built a network that’s both massive and efficient. Their app makes it easy to request anything from a quick food run to a cross-city suitcase delivery. But what really sets them apart is their commitment to profitability over market share.
In my experience, companies that chase volume at the expense of margins rarely last. FlashEx seems to get that. Since mid-2024, they’ve scaled back on less profitable business-to-business operations to focus on what they do best: personalized delivery. This pivot has kept them in the black while competitors struggle.
“We’re not here to chase volume at the cost of profitability. Our focus is sustainable growth.”
– FlashEx management
This approach isn’t just smart—it’s refreshing. In a market where subsidies and price wars are the norm, FlashEx’s discipline could be a blueprint for others.
Challenges in the Delivery Race
Despite the opportunities, the delivery market isn’t all smooth sailing. Competition is fierce, and consumer spending in China has been shaky lately. FlashEx’s stock, for instance, has taken a hit, dropping over 50% in 2025. Why? A mix of tougher competition and cautious consumers tightening their belts. Yet, analysts remain optimistic, with some predicting a 21% upside for FlashEx’s shares.
Another challenge is the reliance on subsidies. Many companies offer deep discounts to attract customers, but this eats into profits. FlashEx’s decision to avoid this trap gives them an edge, but it’s a risky bet. Will consumers keep paying a premium for personalized service when cheaper options are available?
- Competition: Giants like JD.com and Meituan are pouring resources into on-demand delivery.
- Consumer Spending: Economic uncertainty in China could dampen demand.
- Profit Margins: Subsidies and price wars threaten long-term sustainability.
It’s a high-stakes game, and not everyone will come out on top. But for now, FlashEx seems to be playing its cards right.
What’s Next for China’s Delivery Market?
Looking ahead, the on-demand delivery market is poised for growth, but the path forward won’t be easy. As O2O retail expands, companies will need to innovate to stay competitive. FlashEx’s dedicated courier model could inspire others, but scaling it without sacrificing quality is the real challenge. Meanwhile, e-commerce giants like Alibaba are jumping into the fray, offering 30-minute delivery on everything from clothes to groceries.
I can’t help but wonder: will personalized delivery become the new standard, or is it a niche that only a few can master? The data suggests there’s room for growth, but only for those who can balance speed, scale, and profitability.
“The future of delivery lies in personalization and efficiency, not just speed.”
– Logistics expert
As China’s urban population grows and technology advances, the demand for instant delivery will only increase. But the winners will be those who can deliver—pun intended—on both customer expectations and financial discipline.
Key Takeaways for Investors and Consumers
So, what does this all mean? For investors, the personal delivery market is a high-risk, high-reward space. Companies like FlashEx, with their focus on profitability, are worth watching. For consumers, the rise of on-demand delivery means more convenience than ever—but at what cost? As competition heats up, we might see prices rise or service quality dip.
- For Investors: Look for companies with strong unit economics and a clear path to profitability.
- For Consumers: Expect faster, more personalized services, but be ready for potential price hikes.
- For the Industry: Innovation in logistics and technology will drive the next wave of growth.
In my view, the personal delivery boom is a microcosm of China’s broader economic story: rapid growth, fierce competition, and a relentless drive for innovation. Whether you’re a consumer, investor, or just curious, this is one trend you can’t afford to ignore.
China’s delivery market is a wild ride, and we’re only just getting started. Who will come out on top? Only time will tell, but one thing’s for sure: the race is on, and it’s moving faster than a courier on a deadline.
