YTO Express (Philippines)Technology Group Corporation
E-Commerce in the Philippines has taken the country by storm, with the largest increase in shopping app usage among all the countries in Southeast Asia. Shopping apps in the country recorded a total 4.9 billion sessions. Other data shows 44% of Filipinos aged from 35 to 44 years of age have increased their online shopping transactions during the pandemic.
COVID-19 led to a significant increase in sales volumes on all e-commerce platforms in the country, and highlighted the need for more accessible express delivery services to cater to the already high and growing demand.
1.YTO Express
With 20+ years of expertise in the express delivery services in the largest e-commerce market in the world, YTO Express Co., Ltd. has established a deep understanding of customer needs and the operational know-how to best address them, by maximizing best practices in supply chain and development into an integrated logistics service operator and supply chain integrator across difference aspects in the value chain - Express logistics, Technology, Aviation, Finance, Commerce, and Trade.
With our mission in heart - "Customers’ expectation, YTO’s mission", YTO always put
customer experiences as our focus. Our goal is to create "Safe, Fast, Convenient and Reliable"
service and strive to build our values with the key values in heart - Quality, Technology, Green,
and Morality. We aim to build a full value chain in YTO’s supply chain eco system.
In October 2016, YTO Express launched its IPO and became the first express delivery company listed on the Shanghai Stock Exchange with a market capitalization of 9 billion US Dollars. Only four years later, YTO Express has grown to more than 4,600 branches, over 70,000 service network and shops, 133 delivery centers, and over 450,000 employees. Our express delivery service has spanned all 31 provinces in Mainland China.
2.YTO Airlines
Founded last June 2015, YTO Airlines is the only air cargo enterprise directly owned and operated by an express delivery company in the Yangtze River Delta. At present, YTO owns 19 all-cargo aircrafts, with a total of 97 domestic and international routes, among which there are four routes between China and the Philippines: 1. Hangzhou - Manila, 2. Changsha - Manila, 3. Nanning - Manila, and 4. Yiwu - Manila. YTO expects to expand to 100 all-cargo aircrafts by 2025.
YTO's international expansion is in sync with the “One Belt and One Road Initiative" and we continue to grow our business sectors specifically on cross-border E-commerce, and overseas expansion.
In November 2017, YTO strategically acquired On Time International, a Hong Kong listed company, completing the first large-scale cross-border M&A transaction in express delivery industry.
Currently, the YTO International Network spans six continents, covering over 150 countries. YTO International has 48 branches and offices across 18 countries and regions, with 522 global franchisees or agents.
3.YTO Express (Philippines)
YTO Express (Philippines) Technology Group Corporation is the first overseas subsidiary of YTO Express Co. with the full autonomy in domestic operations. Following an in-depth market study that took two years, YTO Express Philippines has been officially incorporated in November 2021. Following two rounds of funding amounting at 440 million US Dollars, YTO Philippines will invest mainly on the following aspects –
a. Distribution Centers
YTO’s first round of Distribution Centers will be strategically located at Carmona, Cavite with the size of 6,040 square meters, and Cabuyao in Southern Luzon with the size of 15,000 square meters. Both are already launched and fully operational by April 2022.
Another DC in Cabuyao with the size of 30,000 square meters is a full investment project owned and developed by YTO Philippines, is located 3km from Cabuyao Expressway Exit, it is now under designing stage for the standard logistics warehouse set-up, i.e. 4-sided ,High-Platform,
b. Investment of Distribution Center’s conveyor belt
YTO Philippines will bring in double-layer two-way automatic weighing/scanning conveyor belt, which is YTO’s owned R&D cross-belt sorting system to maximize our strength from YTO’s decades of expertise, which can achieve sorting of 90,000 small parcels per hour.
c. Investment of Station Transport Wagon (Van type truck)
YTO Philippines has established strategic partnership with China National Heavy Duty
Truck Group Co., Ltd., Foton Motor, and Qingling Automobile Co., Ltd., for different models
of vehicles. 100+ units of 4.2-meter and other type of trucks, 200 multicab have been secured in our first
round of investment, which is striving to guarantee the smoothness of transportation and
efficiency level in our services. Aditional 200+ trucks are expreted to be put into operation by the end of 2024.
Executive team
YTO Philippines’s executive teams are composed of veteran logistics experts from the
industry. Director level up are all with over 10 years of experience across different
departments in the field – General Management, Operations, Network Planning, and Finance
in YTO Group.
Meanwhile, to ensure high level of localization and to serve the local market better, our
management team are composed of local industry experts with over 3 years of experience in
local E-commerce, cross boarder E-commerce and corporate clients to meet their demand.
Business Model
YTO sets the root in over two decades of expertise and vast network of resources. We can leverage our owned aircrafts, operation management system, and our vast business network. YTO has fixed chartered cargos coming from China to the Philippines 3 times a week on 3 different routes – from Hangzhou, Yiwu and Guangzhou. We will launch cross-border air-cargo delivery service from China to the Philippines and vice versa in June 2022 for smaller quantity.
For main routes truck fleet operation, we will adopt direct-operation method in procurement, management and operation. The departure modes, scheduling, on-time arrival and whole-process routing design are all planned according to the best practices in our business intelligent.
Network planning
Base on the development of E-commerce and the flow of parcel volume, our first round of launch will be in NCR area and key Luzon areas by the end of April 2022 – for pickup and delivery services. Target to have full coverage of whole Luzon Island by June 2022 with 200+ branches, and 95% coverage of all the major areas of the Philippines (Nationwide) by August 2022, reaching 300+ branches.
YTO Philippines Headquarter will ensure direct management for key Distribution Centers and network expansion by the growth of franchisees in major cities. YTO Philippines will also set up wholly-owned direct-operated subsidiary companies in key regions.
YTO Philippines has setup strict criteria in Franchisee selection process. We prioritize franchisee with existing experience in E-commerce selling. We require high level of marketing skill, solid operation experience, strong funding capacity and risk management capability. So far we have secured and signed with 117 franchisees as our distribution partners.
System Support
YTO Group has set up a YTO Express Technology Overseas R&D Team last October 2021. With an in-house team of 240 hand-picked talents across different technology expertise on board, we are developing our owned software systems based on overseas buyers’ shopping habit, application scenarios adaptation, local payment method integration, distribution/delivery support and information security. The system is now fully operational and achieved whole-process parcel information visualization.
YTO places significant emphasis on technological innovation in the core of its development plans. We have constantly and consistently improved efficiency through the use of innovative technology. With our strategy in digital transformation, YTO took the lead in building the first National Engineering Laboratory in logistics industry - the National Engineering Laboratory for Logistics Information Interchanging and Sharing Technology, to promote the rapid development of the express logistics industry towards innovative technology and business intelligence. Over the years, YTO's cumulative Research & Development investment in information technology projects has exceeded 320 million US Dollars.
Aftersales Support
YTO Philippines is setting up Customer Service Call Center which is a jointed effort formed by the Company HQ, subsidiary companies, and our franchises, providing a 24/7 all year long service team to help merchants, buyers, and e-commerce platforms in different problem solving. We can do pre-claim for parcels within a certain value caused by force majeure.
Payment Method Collaboration
YTO Philippines is developing different major payment gateways – such as SHOPEEPAY, Gcash,PayMaya and other third party digital payment platforms, to ensure timely and secure payment collection for clients and E-commerce platforms.
YTO Philippines will be the first to promote QR code express payment method by its self-developed system.
Insurance Collaboration
YTO Philippines is working with major insurance providers, such as Malayan Insurance Company,Inc., Prudential Guarantee and Assurance, Inc., BPI/MS Insurance Corporation and some other Philippines local insurance companies, seeking best insurance coverage for our employees, parcels,and vehicles, to ensure smooth operations to guarantee the quality of our services.
YTO Philippines will always adhere to our mission - "Customers’ expectation, YTO’s mission".
With our best effort and caring services, we will deliver each parcel by using our latest innovative technology in a timely manner. We aim to empower Philippine sellers and to work hand in hand with our strategic platform partners to complete the best shopping experience for the Filipino people.