Shenzhen Hive Box Technology Co., Ltd (Fengchao) announced that from April 30, it will charge non-members 0.5 yuan per 12 hours if they fail to pick up their packages from its Hive Box terminals within 12 hours. The extra charge will be capped at three yuan, and there will be no charge for legal holidays.
The company also launched various services for members, with monthly membership priced at five yuan and seasonal membership at 12 yuan. There will be no limit on the number of times a package can be stored within the membership period. Each package can be stored for seven days.
Hangzhou Dongxinyuan Community Committee recently issued a notice that Fengchao’s overtime charge harmed the residents’ interests, and thus the use of Hive Box will be suspended from 7 a.m. on May 7.
On the afternoon of May 9, Fengchao issued a statement on the suspension of its Hive Box service in the community. It claimed the committee had breached the contract by suspending the service as it had already paid the rent to the committee for the terminals.
The company previously offered the storage service for free, and it is common practice for delivery people to drop the parcels at one of the Hive Box stations for collection if the recipients are not home. The service is wildly popular with people who are not often at home or who do not wish to expose their exact home address.
Why does Hive Box charge suddenly? According to CCTV reports, the charging scheme is backed by huge operating losses. The data shows, the company lost 245 million yuan on unaudited revenue of 334 million yuan in the first quarter of 2020, while it lost 781 million yuan on revenue of 1.614 billion yuan in 2019.
Although it has been losing money, Hive Box is expanding its market share。 On the evening of May 5, SF Holdings issued an announcement that fengchao network intends to acquire China post and wisdom by means of equity restructuring。 After the acquisition, Hive Box’s market share will reach 70%.
On the night of May 9, Fengchao softened its stern attitude, saying it would provide subsidies to its customers.