As China’s bourgeoning middle class is gaining deeper pockets and tighter schedules, the demand for more sophisticated moving services is also on the move. Join us this week on New Money as we look at how some industry players are introducing new technology and new business models, looking to become Movers and Shakers of the market.
It's clearer what you're paying for. When we move, it's important to us that we get professional movers that don't end up breaking our things. The app was very easy to use, and it lists very clearly how much it costs, based on the size and weight of the different items. It also clearly shows the distance, so they won't suddenly start charging you extra fees.
Tuo Jianbo came to Beijing from Chongqing almost two decades ago and has already spent 15 years working for traditional moving companies here. Two years治療痛風, ago, he decided to start working tor Lanxiniu, an ber-like app where people can order moving trucks at a moment's notice.
I've been working in the moving business for a long time, and I've had a very good experience working for Lanxiniu. Most of the drivers I know are very happy with them. The pricing system is very clear and transparent, so we don't run into disagreements with the customers. We place the customer first. We're here to help the customer, and we help them solve any problems that they have. We began working for the app after some friends reco妹妹ended it to us. It's very convenient and it's easy to get work.
Lanxiniu was established in November 2013, and has already attracted 120,000 truck drivers to its platform. An average of nearly 20,000 drivers are active on any given day, and can arrive to pick up your things within 15 minutes of placing an order. The company received investment from Baidu and Fidelity Investment in its series B funding round, and has already become a major player in the industry. The company's founder, Wang Su, introduces his company.
We support 24-hour services moving anywhere within the city limits. Once you place an order inside the app, drivers can respond as quickly as within five or ten seconds. That's our first advantage.
Our second advantage is that you don't have to contact different companies and ask how much they charge, explain what things you're moving, wait for the moving company to assign a driver, and so on. We're fast, because we don't have a chain of people that have to pass on the order. In addition, we have a very transparent pricing system.
Our third advantage is that we have a service system that the drivers follow, which ensures that our customers get high-quality service. If you log on to our platform, you'll see that more than 99% of the feedback is positive. We have an advantage in management, technology, and business model. We don't need to make a lot of decisions for every order, because we've standardized the entire process.
The service quality is decided by a large number of tags attached to each driver. There's a customer satisfaction tag, for things like the number of deals completed, an orderliness tag to check if they took inventory, wore uniform, and signed a service agreement; a training tag that records what tests they've taken, including scores, and whether they've passed evaluations. Once they start working, our customer service will monitor any discrepancies, such as a lack of orders, unanswered orders, complaints, bad reviews, and so on. We collect granular data on their work and analyze it manually. What that means is that we don't simply rely on customer reviews; we have a group of people that monitor the entire process from beginning to end. Our system is split into, first, the driver training system. Second, the reward and penalty system. Third, the driver Net Promoter Score, which measures each driver's loyalty and also provides some bonuses. Fourth, we have a knowledge base that we use to grade all of our drivers, customer service, products, and management personnel on a scale. We use this to evaluate who is at fault in different situations. For instance, we provide up to 5,000 yuan in free compensation, but to prevent people from abusing it, we've added a lot of conditions. Fifth, we have a service monitoring system where we manually decide what mechanisms and conditions should be used to decide penalties. These five modules help us ensure that we provide high-quality service.
What has struck me about Lanxiniu is that most companies in the moving industry don't develop apps, mainly because it's a relatively low-frequency service. Lanxiniu is one of only a few companies to have done so. What they are trying to do, is to use their app to, despite the low number of orders per customers, to increase the total number of orders. This is one way of using the Internet to build volume in industries where it used to be very difficult to attract a large number of customers. I think Lanxiniu has created a very good model, and they might just be able to achieve that goal. What they do, is that they crowdsource the labor, but they maintain a centralized management. The company has a unified image outward and a unified service standard. They have a relatively high level of service compared to other companies. But still, they're not high-end, and they're targeting the mass market.
We're co妹妹itted to the moving business, and we hope to become the biggest company in the industry. That's what both I and all of our employees are working to achieve. At the moment, we don't have any plans to expand into other areas in the future. That's because, first of all, each segment of the service industry has its own unique traits, and to us, striving to become the very best in one particular industry is a very worthy and challenging endeavor. So, our number one goal is to become the best moving company in China, and to cover the entire country.