SF Express is now as valuable as Yahoo. (Photo : Getty Images)
When Wang Wei started SF Express in the '90s, he got a loan from his father of $13,000 and started the "black delivery" business, or sending parcel outside of the national post office system.
Today, SF Express is the biggest parcel service in China and has listed on the Shenzhen Stock Exchange. The listing soared the company's shares to 59 percent.
The net worth of China's wealthiest man now is at $26.5 billion. He gave out bonuses to employees the same day.
The founder of ZTO Express Inc. and three other parcel service CEOs had the same fortune when they listed at the New York Stock Exchange last year. The combined net value totaled to about $47 billion.
Su Baoliang, a Beijing-based analyst at Sinolink Securities Co., said that there is rough competition in the delivery service sector lately but business is booming.
"The industry has passed the first phase of vigorous growth," said Su. "Companies have to enhance operational efficiency. Otherwise, they will be either marginalized or acquired by competitors."
The expansion of China's local parcel companies is posing threat to bigwigs like FedEx, UPS and DHL. The key to further growth is to have a network to reach China's farthest regions.
Local companies are fueled by the country's growing online marketplace and are poised to take on more opportunities created by Alibaba.
Not only the past decade, but the next few years will also be a golden age for Chinese couriers' development," said John Song, a Shanghai-based director of the logistics and transportation practice in China at consultancy Deloitte. "There is huge potential in the development of these Chinese couriers."
"Not only the past decade, but the next few years will also be a golden age for Chinese couriers' development," according to John Song, a Shanghai-based director of the logistics and transportation practice in China.
"There is huge potential in the development of these Chinese couriers," he added.
