Free Web NovelChapter 266: Chapter 226: Pei Yi: Boss, There’s Trouble! Acquiring Quanfeng, Accelerating Expansion
Once Chen Dejun finished his tirade, Liao Wei was ready to jump on stage and retaliate. But a glance from Zheng Shengyu was all it took for him to sit back down obediently.
Chen Yansen hadn’t planned on going on stage, but Zheng Shengyu was insistent. After a moment’s thought, Chen Yansen decided not to play coy, straightened his suit and tie, and strode onto the stage.
"All of you are esteemed veterans of this industry. When it comes to building out our transportation network, warehousing facilities, and delivery systems, Cloud Speed still has much to learn from you."
Chen Yansen said humbly.
Zheng Shengyu couldn’t help but chuckle. Cloud Speed Express had already captured sixty percent of the low-to-mid-end market, snatching a huge portion of business from the Three Passes and One Reach.
The more humble Chen Yansen appeared, the more irritated Chen Dejun and the others grew.
"Cloud Speed’s biggest problem right now is that our pickup volume doesn’t match our delivery capacity. Our forty thousand employees are working overtime every day and can only manage to deliver six million packages. A moment ago, I heard President Chen say from the audience that Shentong Express’s couriers have seen their income shrink drastically and are now unemployed. As a friendly competitor, I’m willing to hire every last one of them."
Chen Yansen quipped with a smile.
He had taken Chen Dejun’s attempt to play the victim and turned it back on him as a sarcastic jab.
The other delivery company bosses in the audience couldn’t help but snicker. ’This kid is ruthless,’ they thought. Still, most of them gave Chen Dejun some face and didn’t dare to laugh too loudly.
Liao Wei, on the other hand, had no such reservations and burst out laughing.
Next, Chen Yansen returned to the main topic, speaking eloquently on the issues of improving package security, shortening delivery times, and enhancing customer service.
However, he only spoke about *what* he was going to do, remaining tight-lipped about *how* he would do it.
’No wonder he’s worth tens of billions at just twenty. Slippery as a fox.’
Wang Wei mused to himself, his eyes narrowing.
’Even though Cloud Speed is currently focused on the low-end market while Shunfeng monopolizes high-end delivery, I have a feeling Cloud Speed could become our fiercest competitor in the future.’
’From what I know, Pinbei Mall’s daily orders have already broken eight million, making up forty percent of the country’s total delivery volume. The price per parcel is low, but the economies of scale are already in place. That’s why even the combined forces of the Three Passes and One Reach are no match for Cloud Speed.’
’Pinbei generates five million pickups for Cloud Speed every day, while the Three Passes and One Reach mainly rely on Taobao and Tmall Mall for their business.’
’But as of February 2012, Ah Li hasn’t started investing heavily in the delivery industry. Before this, they had only put money into Best Express once.’
’In Ma Liyun’s eyes, a heavy-asset business model is too stupid and inefficient, and it isn’t even that profitable. He’d rather dump all the dirty work on third-party delivery companies.’
Of course, once Ah Li went public and Ma Liyun was sitting on a fortune of hundreds of billions, his way of thinking would change.
Wang Wei watched Chen Yansen. ’A young man like that is bound to have immense ambition,’ he thought. ’Once Cloud Speed finishes gobbling up the market share of the ’Pass’ companies, it will definitely make a play for the high-end market and compete with Shunfeng.’
From a corner, Chen Feikang stared daggers at Chen Yansen, his heart filled with regret. ’Why didn’t I just hire someone to run over and kill both him and Liao Wei back then?’
Ever since he had taken over Speed Peak Express, business had plummeted. His franchise locations were constantly being sabotaged—signs torn down in the middle of the night, truck tires removed.
The financial losses weren’t huge, but the harassment was infuriating!
Because of this, almost no one dared to become a Speed Peak Express franchisee anymore, and those who had already paid their fees were all clamoring for refunds.
So when he heard that Chen Yansen was thinking of acquiring other delivery companies, an idea immediately sparked in his mind.
’Instead of just waiting for the company to die, I should sell it. At least I can cash out.’
But he also knew his older brother, who was currently doing time, would most likely disagree.
Chen Feikang wasn’t concerned, however. He had obtained his brother’s power of attorney long ago.
The morning passed in a flash. The Postal Association had booked a luncheon at a nearby hotel, and everyone drove over.
Fifteen minutes later, Chen Yansen had just taken a seat in the banquet hall when Chen Feikang approached him.
"You’re saying you want to sell Speed Peak to Cloud Speed?"
Chen Yansen sized up Chen Feikang with great interest.
’An interesting pair of brothers!’
Liao Wei, sitting beside him, grew anxious. He’d nearly lost his life because of them; of course he wanted to see Speed Peak utterly destroyed.
"Yes, President Chen." Chen Feikang was extremely deferential in Chen Yansen’s presence, nodding in confirmation.
"Thirty percent of Speed Peak Express’s hubs across the country have already folded. You have no volume, no delivery speed... why would I buy a pile of scrap metal?"
Chen Yansen said mockingly, curling his lip.
"President Chen, Speed Peak still has nine major transit hubs in North China, East China, Southern China, and Central China, as well as 1,300 transport trucks. Once Cloud Speed absorbs these resources, your delivery times can be shortened significantly."
Chen Feikang listed Speed Peak’s core assets one by one for Chen Yansen, his tone utterly servile.
"I’ll leave the decision to you," Chen Yansen said, looking at Liao Wei.
’Acquiring Speed Peak would certainly accelerate Cloud Speed’s expansion, but I have to consider Lao Liao’s feelings.’
"Thank you, Boss." A warmth spread through Liao Wei’s chest. He could feel how much his boss valued him.
’Personally, I would never agree to the acquisition. But from the perspective of the company’s interests, and the boss’s, if I refuse, it’ll look like I’m not considering the big picture.’
For a moment, Liao Wei was torn.
Just then, Chen Jiahai of Quanfeng Express approached them, a wine glass in hand and a broad smile plastered on his face.
"President Chen, I’ve heard so much about you. It’s an honor to finally meet you in person. I’d like to propose a toast. I’ll drink to the bottom, you can drink as you see fit."
Compared to the bosses of the Three Passes and One Reach, thirty-six-year-old Chen Jiahai was much younger. He wore an indigo suit and, despite not being tall, had a sharp, keen look about him.
In this price war, Quanfeng and Cloud Speed were technically on the same side, thanks to their connection with Penguin. However, this unprofitable line of business had made Chen Jiahai think about backing out.
He had originally been a shareholder in Zhongtong Express. Two years ago, when the Zhongtong Yanjing Branch was merged into the headquarters, he cashed out for 35 million yuan and founded Quanfeng Express.
"President Chen, a pleasure!" It’s hard to turn away a smiling face, and considering his connection to Liu Zhiping, Chen Yansen showed Chen Jiahai plenty of respect by downing his drink in one go.
Chen Jiahai glanced at Chen Feikang and asked in a low voice, "President Chen, could we have a word in private?"
"Of course." Chen Yansen put down his glass and walked with Chen Jiahai to a private room outside the banquet hall.
This left Liao Wei and Chen Feikang staring awkwardly at each other.
「Meanwhile.」
After hearing Chen Jiahai’s explanation, Chen Yansen asked in astonishment, "President Chen, you want to sell Quanfeng to me?" ƒгeewebnovёl.com
"To be frank, Quanfeng received fifty million in financing from Penguin last year. The original plan was to use us to shore up Paipai Network’s weak logistics, but the group halted any further investment plans. Now, with the competition in the delivery industry worsening by the day, I believe putting Quanfeng in your hands, President Chen, is the wisest choice."
Chen Jiahai said with a sigh, his words a mix of flattery and justification.
"Cloud Speed and Quanfeng have different operating models. An acquisition is fine, but I won’t be taking on the assets of your franchise network. Only directly-operated hubs, transportation equipment, warehouses, and personnel can be included in the acquisition."
Chen Yansen made his unappealing conditions clear from the start.
"No problem." Chen Jiahai breathed a sigh of relief and agreed with a smile.
After they ironed out the details, Chen Yansen pulled out his phone and called Gao Weilin, telling him to assemble a team to handle the subsequent acquisition process.
And so, Quanfeng Express, which was supposed to have its moment of glory in 2016 and secure its position as the leader among second-tier delivery companies, never even reached its peak before its founder, Chen Jiahai, threw in the towel.
There was no other way. It had no major financial backing, nor did it have an e-commerce platform to feed it orders.
The price war between the Three Passes and One Reach and Cloud Speed had raged for less than six months, and smaller companies like Quanfeng and Speed Peak were already buckling.
They were lucky to be acquired. Countless other delivery companies didn’t even have the qualifications to attend this industry conference!
They had already been driven out of business by Cloud Speed last year!
When Chen Yansen returned to the banquet hall, Chen Feikang was still pestering Liao Wei, begging him to buy Speed Peak.
"Lao Liao, come here for a second. I’ve reached an agreement with President Chen. I need you to organize a team to take over all of Quanfeng’s transfer centers, hubs, and transport vehicles."
Chen Yansen instructed Liao Wei.
The implication was clear: he had decided to fully acquire Quanfeng Express.
"Got it, Boss. So what about Speed Peak?" Liao Wei asked quickly, a knowing grin on his face.
Chen Yansen looked at the anxious Chen Feikang, smiled, and said, "We’ll table that for now."
Chen Feikang’s heart sank. He knew that "table that for now" was just a polite dismissal—a clear rejection.
He shot a hateful glare at Chen Jiahai. ’If Quanfeng hadn’t jumped in to muddy the waters,’ he thought, ’Liao Wei would have been forced to agree, no matter how much he disliked me and Speed Peak. He would have done it just to avoid causing trouble for his boss.’
The luncheon ended, and after a short break, the afternoon seminar began.
Zheng Shengyu’s requirements were firm: regardless of their disputes, the minimum price per parcel was to be 1.5 yuan. Furthermore, the ’Pass’ companies were responsible for overhauling their franchise networks and standardizing service procedures. Lastly, Shentong and Yuantong were each hit with another 10 million yuan fine.
In Chairman Zheng’s own words, "The Postal Association headquarters has received a total of 83,000 complaints about lost packages. This time, it’s a fine. Next time, I’ll just revoke your operating licenses."
If Chen Dejun and Yu Weijiao wanted to continue their price war, they would have to make some painful sacrifices. If they dared to let their service quality rot or cause any more trouble for the association, they would be utterly crushed.
The two exchanged a look, both feeling Zheng Shengyu’s decision was unfair. ’It was clearly Cloud Speed that started this whole mess!’
But at this point, nobody cared.
Before leaving, Wang Wei took a deep look at Chen Yansen, then turned and left with his assistant and bodyguards.
Zheng Shengyu, however, pulled Chen Yansen aside for another chat. Handing over his personal phone number, he said bluntly, "Cloud Speed is rather lacking in resources for its rail and air transport routes. If you’re looking to expand into air cargo, I can introduce you to some sources for used Air China planes."
’Right now in the delivery industry, everyone except Shunfeng is just scrounging for scraps in the low-to-mid-end market. I’d love to see Cloud Speed and Shunfeng start fighting it out. It would really stimulate the sector’s vitality.’
"Thank you, Chairman Zheng. Cloud Speed does indeed have plans in this area, it’s just that the funds..."
Chen Yansen trailed off here, stopping deliberately.
"With Cloud Speed’s market position and growth rate, you’re worried about getting a loan?"
Zheng Shengyu chuckled.
For him, helping Cloud Speed secure a loan was as simple as making a single phone call.
He didn’t make it explicit, however. He simply had Liao Wei take down his assistant’s number.
After saying his piece, Zheng Shengyu also left with his entourage.
"Boss, are we really going to buy cargo planes?" Liao Wei asked in surprise.
"Don’t you think three days for deliveries within the same province, and five to seven days for cross-province shipments, is too slow?"
Chen Yansen shot back.
Having lived through the golden age of e-commerce more than a decade in the future, he knew that customer expectations for delivery speed would only get higher.
Same-day delivery within a province, and two days—three at most—for cross-province.
Any longer than that, and customers would consider it a trash-tier delivery service.
"I understand." Liao Wei nodded. He hadn’t thought Cloud Speed was slow, since their delivery efficiency was about the same as everyone else’s.
However, he also knew that improving their speed would allow them to launch a corresponding premium service, which would lead to profitability that much sooner.
Otherwise, at their current pace of development—continuously setting up new transit hubs and logistics points, and buying transport vehicles in bulk—Cloud Speed was on track to lose at least a billion yuan by the end of the year.
The boss might not care, but he had to!
If Cloud Speed failed to turn a profit soon, there was no guarantee the boss wouldn’t get fed up one day and kick him to the curb.
After all, in Liao Wei’s view, a manager who couldn’t turn a profit was just a waste of space.
After speaking, Chen Yansen got into a car with Song Yuncheng and headed toward a villa district in Pudong.
