<h4>Chapter 786: Drone and Express</h4>


    <strong>Trantor: </strong>_Min_ <strong>Editor: </strong>Caron_


    This letter of intent for partnership came from SF Express. The partnership hoped to introduce drone express technology to Hua and use the city of Xiangjiang as a pilot toplete the deployment of the drone logisticswork.


    Jiang Chen was extremely confused after reading the content of the partnership.


    “Drone + Courier” – this concept was proposed long ago, and it wasn’t a concept from Future Group.


    As early as June 2013, Matte Corporation tested droneworks in Haiti and Dominican Republic. The drones used were capable of carrying two kilograms of weight and flew 9.7 kilometers. Afterpleting the initial nning of the dronework, thepany was nning to establish arge international drone transportwork and a global supply system for drone essories. At the same time, it also nned to establish a charging base station so that drones couldnd along the way for charging.


    In September of the same year, the courier drone independently developed by SF Expresspleted internal tests and conducted trial operations in local areas. This drone adopted eight rotors and had a flying height of about 100 meters. With a built-in GPS navigation system, the destination and route could be set in advance by staff. The drone would automatically reach the destination and errors could be controlled within two meters.


    However, both Matte and SF hadn’t been able to extend the drone logistics for widespread adoption. The former drone seemed to be suitable only for poor countries in the third world, while thetter’s drones were only suitable for use in poor mountainous areas in the country.


    Although drone logistics could significantly increase distribution efficiency as well as reducebor costs, they were constrained by severe weather and the inability to avoid vandalism and other shorings during flight, rendering the concept of “Drone + Courier” only feasible on paper.


    Peni was probably the only modern city in the world that achieved adoption of drone logistics. However, the reason why was partially because of the technical advancement in drones. However, the more crucial factor was the safety and security of Peni.


    For example, some news from some time ago: “A man in Guangzhou sent mooncakes to his girlfriend with a drone and the drone was shot down by an old woman. When the guy discovered that his drone was ‘hijacked’, he rushed to the woman forpensation, but the woman not only denied having the drone shot down, but she also said she was almost injured by the drone...”


    Not to mention that the legition of drones had always been a gray area, and there seemed to be no space for drone logistics to be?bigger and stronger from the general public. SF Express wanted to introduce beta series drones from Future Heavy Industries andplete the establishment of the drone logisticswork in Hua. To be honest, Jiang Chen didn’t view their decision favorably.


    However, their offer made it difficult for Jiang Chen to refuse.


    For thepletion of the drone logisticswork in Xiangjiang, the quote from SF Express was 450 million US Dor. ording to Jiang Chen’s calctions, 500 drone terminals should be able to cover all areas of Xiangjiang and to meet the demand for distributio, about 50,000 drones would suffice.


    ording to the cost of production of the Beta-3 drone, a drone cost 3,000 US Dor. Compared to Matte’s 5,000 US Dor drone, they offered an advantage in both technology and price.


    A detailed calction suggested that the establishment of the drone logisticwork for SF Express wouldn’t exceed 200 million US Dor. Compared to its offer of 450 million US Dor, it was a 125% profit!


    Moreover, if the pilot city of Xiangjiang proved the feasibility of drone logisticsworks to the maind, the next step of SF Express undoubtedly would be to expand the drone logisticswork to Shenzhen, followed by Guangzhou, and then...


    Consider the number of cities in the entire country. How many courierpanies would they need?


    Such a huge market was simply an inexhaustible gold mine!


    “Your face tells me you’re very interested.” Looking at Jiang Chen’s expression, Xia Shiyu grinned and smiled.


    “Yes, this market is worth more than 100 billion US Dor. I don’t think anypany wouldn’t be interested.” Jiang Chen looked at the documents and nodded.


    To be honest, although he didn’t understand the details of the partnership, he was certain about the prospects of the entire market. With the number of cities and courierpanies, even if the average city could only earn 500 million US Dor, the scale of the market would be unimaginable.


    “I’m also very optimistic about this agreement. Regardless of whether SF Express will seed during pilot operations in Xiangjiang, there are no risks for us. However, I don’t agree with their proposal for the time being.”


    “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 tform that integrated the merce 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 thebor costs of Future Group. SF Express had to pay sries 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 ourpany have management experience in this area?”


    “We don’t need to start from scratch. My advice is to buy a logisticspany, 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 Peni City. If the trial operation proves to be feasible, we will fully promote it on the maind and further promote it to the world!”


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


    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 thest question he was concerned about.


    “Thepletion of the acquisition will cost about 3 billion US Dor. 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 Dor. The use of Xiangjiang as a drone logisticswork pilot has a cost of 200 million US Dor.”


    By his calctions, the cost of the entire project was about 4 billion US Dor. 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 logisticswork, the letter of intent from Shunfeng Company was naturally ignored.


    Xia Shiyu smiled andbed her hair behind her ear.


    “I got it.”