China’s Courier Hubs Adopt Driverless Delivery Amid Cost Cuts and Discounts

On September 25, it was reported that Chinese courier centers are quickly integrating driverless delivery vehicles due to rising operational costs and the release of promotional discounts by manufacturers, based on insights from multiple industry insiders.

While autonomous vehicles still need human intervention during certain phases, they compensate for some limitations of manual labor, explained He Xiaoqin, manager of a courier branch in Tianshui, located in northwestern Gansu province. These vehicles can operate continuously, are more economical as they run on electricity instead of fuel, and are capable of navigating flexible routes and making deliveries at night. This enhances delivery speed and helps lower expenses.

Delivering a package with an autonomous vehicle costs approximately 62% less than using a human courier, at about CNY0.06 (USD0.01) per parcel, according to Li Li, manager of another delivery station.

The advanced driverless technology in delivery vans not only reduces costs but is also rapidly advancing, said a business executive at a developer of autonomous vehicles. This technology is particularly effective for the challenging “last five kilometers” of delivery, which has encouraged many courier hubs to adopt autonomous options.

Additionally, changes in payment structures have made self-driving vans more appealing. Some manufacturers now offer monthly subscription plans instead of requiring upfront purchases, which lowers the entry barrier for clients.

“Our autonomous fleet has grown substantially,” Li stated. “Last year, we operated only 14 self-driving vehicles, but now the number has increased to 35.”

By the end of July, roughly 15,000 unmanned delivery vehicles were in operation across China’s courier networks, according to research platform Tongqu Youdao. Over 60% of these units were ordered following promotional offers introduced by manufacturers in the second quarter.

Last month, Shenzhen reported 320 autonomous logistics vehicles on its roads. They traveled a combined distance of 230,000 kilometers, completed 750,000 standard parcel deliveries and 150,000 fresh produce orders, generating an estimated commercial value of CNY7.6 million (USD1 million).