Chinese logistics company announces drone delivery plans

Chinese contract logistics company Shengfeng Development Limited has announced plans to expand into drone delivery services. The company says it will combine its logistics experience with drone technology for services across diverse sectors, particularly in high-demand and remote regions.

China’s low-altitude economy (encompassing civil and commercial drone operations in airspace up to 1,000 metres) is projected to grow rapidly, with the total market value expected to exceed 1 trillion yuan (approximately USD 140 billion) by 2026, according to recent studies by CCID Consulting Co., Ltd., a subsidiary of the China Center for Information Industry Development under China’s Ministry of Industry and Information Technology. The potential applications of drone technology within the sector are expected to be extensive.

Shengfeng Development says it is “entering this low-altitude logistics sector with the expectation that it may be valued by industries that stand to benefit from what is anticipated to be capable of providing more agile and efficient logistics services, such as healthcare, e-commerce, and agriculture”. The company’s planned low-altitude logistics services aim to complement existing supply chains with customised, drone-based delivery options that can reach previously underserved areas, by which it expects to improve connectivity and response times.