CNBC AI News, July 21st – Nanjing’s No. 503 bus line is taking on a new role, according to recent reports. The bus now features a designated “SF Half-Day Delivery Warehouse” at the rear, departing from Liuhe North Station at 3:30 PM daily. This initiative integrates the transportation of local agricultural products, fresh goods, and other express packages alongside passengers, speeding deliveries to downtown Nanjing.
The Nanjing 503 bus route is a crucial link between the Liuhe district and the city center, making daily round trips between Liuhe North Station and Gulou Bus Terminal, covering over sixty stops.
This “bus-plus-delivery” model significantly reduces delivery times from the next day to just 2.5 hours, ensuring same-day delivery for consumers. It’s a move that aims to capitalize on the existing infrastructure to improve efficiency. This approach is particularly beneficial for perishable goods and time-sensitive deliveries in the region.
However, Nanjing’s 503 initiative isn’t entirely novel. Since September 2024, cities like Xi’an, Wuhan, Lanzhou, and Chengdu have experimented with similar collaborations.
Plummeting ridership, fueled by increased use of private vehicles and evolving commuting patterns, has left many urban transit systems facing financial difficulties. Some regions are even contending with complete bus service shutdowns. It’s a tough road ahead for many municipalities trying to balance public services with tight budgets.
The dire straits of public transportation enterprises are reflected in statistics: national bus passenger volume has plummeted from 69.1 billion trips in 2019 to 38.6 billion in 2024, a near 50% drop.
Meanwhile, the latest national express delivery figures reveal that China has held the top spot globally for 11 consecutive years. The country currently handles over 500 million express packages daily, translating to almost 6,000 packages entering the delivery system every second. This booming e-commerce landscape presents an opportunity for transit systems to diversify revenue streams.
The scheduling capabilities, transport capacity, and route coverage of bus systems provide a valuable resource for the logistics sector. Collaboration with public transport can reduce costs for express delivery companies and improve overall delivery efficiency. It’s a strategic alignment that could bring much-needed innovation to the last-mile delivery process.
Against this backdrop, some bus companies are exploring “daytime passenger, nighttime cargo” strategies as a survival tactic. This “meet-in-the-middle” approach between bus operators and express companies aims to create a win-win scenario, benefiting both business performance and community service. This strategy is not without its complexities. Regulations and logistical challenges need to be addressed to ensure smooth implementation.
However, not everyone is on board with the idea.
Some online commentators point out that traffic regulations generally prohibit passenger vehicles from carrying cargo in violation of established rules.
Others worry about the workload placed on bus drivers, arguing that driving passengers during the day and hauling freight at night is excessively demanding.
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