China’s SF Express eyes home-grown technology as means to expand globally

SF Express, one of China’s largest logistics service providers, wants to transform into a technology-driven courier and adopt home grown Chinese technology to boost its business internationally.

“One of our primary objectives is to understand how we use technology to differentiate ourselves [from our rivals],” David Adams, chief executive officer of the international business unit of SF Express, told the South China Morning Post. “China already has tremendous technologies and we will primarily use Chinese technology as a foundation to expand our business.”

For example, the Shenzhen-based SF Express has already started commercial drone deliveries after receiving China’s first drone airspace license. “Drones are really useful in special delivery situations such as emergencies and remote areas,” Adams said. “But right now, from my understanding, there are no plans to use drones outside China.”

To expand the international business, SF Express will adopt two different models depending on the region.

“In some Asian countries such as Singapore and Korea, which are closer to China, we will invest directly in infrastructure and service development,” Adams said. In Singapore, SF Express offers domestic delivery services and will introduce the same in Malaysia later this year.

For countries further away, such as the United States and in Europe, SF Express will use an asset light model.