In the game between Internet moving platforms and physical moving companies, who will win?

With the help of the digital economy, Internet technology, the promotion of big data, and the entry of large capital, the moving and handling industry has transformed from a traditional model to an Internet integration model in recent years, with major platforms exploring and sinking into third- and fourth-tier cities . The Internet moving platform economy has almost monopolized the moving market in just a few years, squeezing the market profits of traditional entity self-operated moving companies. Who will win this competition?

With the help of digital economy, Internet technology, and big data With the promotion and the entry of large capital, the moving and handling industry has transformed from a traditional model to an Internet integration model in recent years, with major platforms exploring and sinking into third- and fourth-tier cities. The Internet moving platform economy has almost monopolized the moving market in just a few years, squeezing the market profits of traditional entity self-operated moving companies. Who will win this competition?

Both operating models have their own pros and cons

At present, there are two major operating models in the moving industry. One is an Internet platform type without moving entities. It is affiliated with small moving companies and drivers, such as 58.com, Lalamove, Blue Rhino, Yifeng, etc., and the Internet moving platform Mainly earn order commissions and advertising fees by subcontracting orders to service providers/individuals. The other type is self-operated traditional moving companies, such as Seal Moving, Ant Moving, Brothers Moving, Little Red Riding Hood Moving, etc. The third category currently derived is the combination of self-operation and affiliation.

Entities and platforms compete with, learn from, cooperate with, and seek common ground while reserving differences in business development.

How do Internet moving platforms seize the market share of physical moving companies?

First, the cultivation of consumption habits

In the era of fragmented economy, the emergence of food, drink, housing, transportation, shopping apps, Weibo, Douyin short videos and other products have greatly increased people’s excitement threshold, making people more likely to be facilitated Attracted by things that are safe, quick and easy to obtain, have visual impact and have quick results. Internet moving companies give full play to their strengths in technological innovation, and technological support makes the industry's service effects and products favored by users. The emergence of new technologies such as cloud computing, big data, and artificial intelligence has provided a new space for thinking about industry standardization issues. In terms of user-friendly app use and convenient payment, the concept label of “anytime on call” for moving vehicles meets consumers’ expectations of “quick results”.

The second is advertising packaging and visual systems

The Internet Moving Platform was originally an Internet media company and is well versed in communication. The fun and color impact of the visual image caters to the younger generation of consumers. , such as the orange color of Lalamove and the blue color of Blue Rhino. In addition, animal anthropomorphism is also a trend in cute culture, such as the "dog" of Kuaigou and the "cow" of Blue Rhino, which are aimed at young people who have just graduated and are working. In addition, hot topics, advertising investment, and celebrity effect also increase brand exposure.

The third is the cultivation of software stickiness

Most Internet moving platforms are new sectors developed from life service platforms. On the basis of successful investment, capital bosses use After gaining consumer trust and stickiness through interactive functions, mutual promotion of software and cross-sector cooperation will be carried out. For example, 58 City Software, after making profits in the service sector, penetrated into the moving industry and independently developed functions such as "home delivery".

The fourth is the temptation of low prices

There is no free lunch in the world, low prices are for future price increases. Price temptations such as "69 yuan for moving, big discounts and full discounts" make consumers stop, but vicious complaints of "starting at a low price and increasing the price midway" are common. The reason is that the upper-level rules do not properly control the downstream affiliates, and the price gap is so large that affiliated workers are unwilling to bear the low selling price. Moreover, the relationship between the two is not an employment relationship, and the binding force on the drivers is weak.

However, the low-price game is enough to consume most of the small entity self-operated moving companies. Self-operated moving companies need to maintain cars, people, and sites. The room for profit growth is limited and they cannot afford a long-term price war. The capital game has forced a major reshuffle in the moving industry. Small, scattered and chaotic moving companies cannot stand on their own, but are being absorbed into the huge hole of the capital platform.

The fifth is high-priced advertising

Everyone knows the importance of advertising bidding. Each company takes action, and online search bidding has become more and more popular. With the support of capital financing, Internet moving platforms have increased their advertising costs. Strike hard.

In addition, the moving and handling industry is different from other industries. Car body advertising itself is a mobile advertising space. The Internet moving platform draws on the Didi Che model and promotes franchise drivers locally. The vehicles run in the streets and alleys, but the physical moving The company needs to maintain its own vehicles, and the vehicles are managed in a unified manner. When there is business, they are dispatched and dispatched. It is impossible to have idle vehicles running on the street at any time. In addition, the cost of vehicle maintenance increases, which determines the balance between car purchase and business capabilities. For example, Seal Moving Company, a leading entity, has more than 100 self-operated vehicles in Beijing and more than 500 vehicles in a nationwide chain. This is already a large scale among entities.

In contrast, Internet moving platforms do not need to pay for vehicle purchase, site maintenance, government supervision, etc., but they use an intermediary model to obtain a large number of affiliated vehicles and receive free delivery. Needless to say, capital profit is a very innovative way to make money, but can this method bring truly good services to consumers? Market considerations are needed.

It is true that the Internet moving platform "e-commerces moving", using the Internet as a supplementary means of marketing channels, providing low-priced services, intelligently solving industry pain points and problems, ensuring industry service effects, and realizing Industry efficiency and user experience have both improved, but disadvantages have gradually emerged in recent years. The platform has no entity, the quality of the driver is uneven, and the situation of poor service attitude, low prices, and arbitrary charges cannot be avoided. Platforms cannot fully manage and train affiliated workers, and many investors and consumers have turned their attention away from the platform economy and back to physical companies.

In fact, unlike e-commerce products, the moving industry is a service of offline labor exchange. The service scenarios are offline, such as homes, offices, factories, etc., and physical moving companies have more service advantages.

Integrated into management training. The employee-employment relationship of self-operated moving companies makes them care more about service feedback, sense of honor, and sense of mission. Scientific and effective training and learning - user feedback - corporate reward and punishment mechanism allow employees to engrave the company's philosophy into action. For example, Seal Moving Company evaluates user reviews, banners, user thank-you letters, etc. every month, and provides regular rewards, as well as incentives such as team building, Seal Jiuding Award, and Superman Award.

The second is reflected in the quality of service. Can handle large, medium and small projects. Entity self-operated moving companies can handle corporate relocation, large-scale national event moving and other projects. These capabilities are not available on Internet moving platforms such as Lalamove.

Take Seal Moving Company as an example. It has scientific management standards and a sound corporate system. Compared with Internet platform moving, Seal Moving’s huge advantage is the resource provision of manpower and transportation capacity. After years of operation and tempering, we have formed scientific and standardized handling regulations, employee systems, training systems, and management systems that are in line with our own development. A scale chain has been formed in vehicle procurement and repair, site procurement, and human resources recruitment and training. Only in this way can we Ensure the benefits and stability of moving services, which cannot be replaced by the Internet platform.

In the future, service will be king. Whether they are self-operated entities or Internet platforms, they will learn from each other and learn from each other's strengths.

Using the assistance of informatization and the Internet to integrate the characteristics of the moving industry, Improve user experience and bring many conveniences to users. This will be an inevitable trend in the future development of the moving and handling industry.