BEST Inc. (BEST): Business Model Canvas [Dec-2025 Updated]

You're looking at BEST Inc. (BEST) right after its early 2025 privatization, trying to map out whether the new consortium can finally translate massive scale into better profitability. Honestly, the core of their model isn't just moving freight; it's the tight integration of their China and Southeast Asia logistics footprint with that proprietary BEST Cloud technology. For example, while total revenue hit RMB 8.32 billion in fiscal year 2023, the real focus now is on improving the gross margin in the Freight segment, which was only 3.4% in Q1 2024, supported by cash reserves of RMB 2,095.8 million at that time. This canvas distills exactly how they plan to execute this strategy-from key partnerships with Alibaba affiliates to optimizing their network activities-so check out the nine building blocks below to see the full picture.

BEST Inc. (BEST) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep BEST Inc. moving after the privatization. The structure shifted significantly in early 2025, cementing control with the consortium members who took the company private.

BEST Global Partners and Phoenix Global Partners (Parent company consortium)

The key partnership here is the new ownership structure following the merger completion on March 7, 2025. BEST Inc. is now a wholly owned subsidiary of BEST Global Partners. This transaction was backed by a massive shareholder mandate; over 99% of votes cast approved the deal, with participation representing approximately 95% of total outstanding voting rights. The implied equity value for BEST Inc. in this deal was about US$54.2 million. For public shareholders, each American Depositary Share (ADS) was exchanged for US$2.88 in cash, and each Class A Share received US$0.144 in cash.

Here's a quick look at the cash consideration from the privatization:

Alibaba Investment Limited and Cainiao Smart Logistics Investment Limited (Consortium members)

Alibaba Investment Limited and Cainiao Smart Logistics Investment Limited are key members of the Consortium that now owns the parent company, BEST Global Partners. Kirkland & Ellis served as U.S. legal counsel to both Alibaba Investment Limited and Cainiao Smart Logistics Investment Limited during the merger process. This relationship builds on prior operational ties, so it's defintely important.

The established cross-border logistics cooperation with Cainiao, the logistics arm of Alibaba Group, covers several Southeast Asian markets. This partnership previously launched direct logistics services to Thailand, Vietnam, and Cambodia, building on an earlier link with Malaysia and Singapore. The combined networks supporting these five countries included:

• 24 sorting centers.
• Over 1,000 service stations.

The 2023 performance for the Global Logistics segment reflects this focus; BEST's global service revenue reached RMB 947 million (USD 133 million), with parcel volume in Southeast Asia growing 14.6% to approximately 140 million pieces.

Network franchisees/agents for last-mile and regional operations

The operational backbone relies heavily on this network. While the exact number of active franchisees or agents as of late 2025 isn't public, we can look at the scale of the network supporting the Southeast Asia operations, which is a major focus area.

The Freight Delivery segment, which relies on this network, saw revenue growth in Q1 2024:

• Freight Service Revenue for Q1 2024 was RMB 1,223.5 million (US$169.5 million).
• This represented a 16.3% increase year over year in Q1 2024.

The company employed 3,572 people as of the latest available data, which supports the network of agents and franchisees.

Technology vendors for hardware and network automation

BEST Inc. partners with various technology vendors to support its proprietary platform, BEST Cloud. This platform is central to optimizing operations across the network. Key applications powered by these partnerships include:

• Network and route optimization.
• Sorting line automation.
• Smart warehouses.

Research and Development Expenses, which cover technology integration and innovation, were RMB 29.3 million (US$4.1 million) in the first quarter of 2024.

E-commerce platforms for integrated logistics services

The integration with major e-commerce players, notably through the Cainiao relationship, is critical for volume. This allows SMEs to access cross-border trade, such as selling goods to China via the Malaysian Pavilion on Alibaba.com. The success of these integrated services drives the BEST Global segment.

The Supply Chain Management segment, which handles integrated logistics for key accounts, saw revenue of RMB 411.0 million (US$56.9 million) in Q1 2024, despite a 6.6% year-over-year decline due to discontinuing non-profitable accounts. Finance: review Q2 2025 volume metrics against Q1 2024 revenue to project segment profitability by end of year.

BEST Inc. (BEST) - Canvas Business Model: Key Activities

You're looking at the core engine of BEST Inc. as it operates post-privatization in late 2025. The focus shifts from public reporting to operational execution, but the underlying activities remain the same, driven by the technology platform established earlier.

Operating integrated freight and express delivery networks

The network activity centers around the core segments. For the three months ended March 31, 2024, BEST Freight recorded a revenue growth of 16.3% year-over-year. The gross margin for Freight was 3.4% for that same period, showing improvement from the prior year's comparable period. BEST Global, which handles the express side, saw its revenue jump by 42.6% in Q1 2024, with parcel volumes increasing by 39.4%.

Cross-border logistics is a major driver here. In Q1 2024, the total volume for the cross-border business increased by a massive 256.4% year-over-year. Specifically, parcel volumes in Vietnam and Malaysia grew by 120.0% and 23.8%, respectively, in that quarter. This network underpins the entire operation, which exists within a global logistics market valued at $11.23 trillion in 2025.

Here's a quick look at the segment performance that defines this activity, based on Q1 2024 figures:

Developing and maintaining the proprietary BEST Cloud SaaS platform

The BEST Cloud platform is the digital backbone, enabling ecosystem participants to use various SaaS-based applications. While specific 2025 platform metrics aren't public post-privatization, the strategy involves leveraging this platform for network and route optimization, smart warehouses, and more. The general SaaS market trend for 2025 emphasizes API-first architecture for integration capabilities, a key feature for a logistics platform.

The platform's efficiency is reflected in overhead control. Selling, General and Administrative (SG&A) Expenses were 11.3% of revenue in Q1 2024, a reduction from 14.4% of revenue in Q1 2023, showing organizational structure optimization tied to the platform's capabilities.

Key platform-enabled operational areas include:

• Network and route optimization
• Smart warehouse management
• Enabling ecosystem participants
• Facilitating cross-border logistics

Optimizing logistics routes and network efficiency via AI

AI integration is critical for efficiency gains across the network. The focus here is on using technology to reduce operational friction. For instance, in Q1 2024, the Cost of Revenue for Freight, as a percentage of revenue, decreased by 3.6 percentage points year-over-year, directly attributed to higher volume and improved efficiency. Similarly, the Cost of Revenue for Global, as a percentage of revenue, decreased by 14.8 percentage points year-over-year due to increased parcel volume and operating efficiency.

This aligns with industry focus; in August 2025 surveys, 50% of logistics professionals gave high attention to optimizing routes for fuel efficiency. The overall Gross Profit Margin for the combined business improved to 2.8% in Q1 2024, up from a Gross Loss Margin of 0.5% in Q1 2023, showing that efficiency improvements are translating to the bottom line.

Managing cross-border logistics and supply chain solutions

This activity is clearly a growth engine. As noted, the total volume for the cross-border business increased by 256.4% in Q1 2024. BEST Global's revenue growth of 42.6% in that same quarter was driven by e-commerce and this cross-border business. The company also focuses on supply chain solutions, though it strategically discontinued certain not-profitable key account customers, leading to a 6.6% revenue decrease in that segment in Q1 2024.

Reducing unit costs to improve gross margins

The drive to improve margins is evident in operational shifts. The overall Gross Profit Margin moved from a loss of 0.5% in Q1 2023 to a profit of 2.8% in Q1 2024. This was supported by the Freight segment achieving a 3.4% gross margin, a 3.6 percentage points improvement. The reduction in SG&A expenses as a percentage of revenue, from 14.4% to 11.3% between Q1 2023 and Q1 2024, also contributes to better overall unit economics.

The net result of these efforts in Q1 2024 was a Net Loss from continuing operations of RMB 172.1 million (US$23.8 million), which represented approximately a 33% improvement year-over-year from the RMB 257.6 million loss in Q1 2023.

Finance: draft 13-week cash view by Friday.

BEST Inc. (BEST) - Canvas Business Model: Key Resources

You're looking at the hard assets and core capabilities that underpin BEST Inc.'s operations as of late 2025. These aren't just line items; they are the physical and intellectual scaffolding for their integrated smart supply chain model.

Proprietary BEST Cloud technology platform and SaaS applications

The technology platform is central, enabling the ecosystem participants to run their businesses. While specific platform adoption rates for late 2025 aren't public, the core capability involves applying these technologies to areas like network and route optimization, swap bodies, sorting line automation, smart warehouses, and store management. This digital layer is what connects the physical network.

Extensive logistics network infrastructure across China and Southeast Asia

The physical footprint is substantial, built up through direct investment rather than just partnerships. The company has been strategically expanding its self-owned express networks and distribution centers in key Southeast Asian hubs. The network development in Southeast Asia is aimed at enabling cross-border express delivery among countries like Thailand, Vietnam, Singapore, and Malaysia, with expansion into Indonesia announced in August 2024.

Here's a breakdown of the scale of the physical network assets, based on the latest available figures:

Automated sorting lines and smart warehouse facilities

The investment in automation is a stated goal for ensuring reliability and scalability in their distribution centers, particularly in Southeast Asia where facilities are described as being equipped with automated facilities. While specific throughput metrics for BEST Inc.'s own sorting lines aren't detailed, the industry context shows that high-throughput facilities rely on systems like inline sorters, loop sorters, or robotic sorters to achieve fast, accurate, high-volume separation of parcels.

Cash and cash equivalents of RMB 2,095.8 million (US$290.3 million) as of Q1 2024

This figure represents the liquid assets available to BEST Inc. at the end of the first quarter of 2024. You should note that this was before the company completed its going private transaction in March 2025, where each ADS was exchanged for US$2.88 in cash.

Workforce of approximately 3,572 employees (as of March 2025)

The human capital supporting the operations is lean relative to the scale of the network. The last reported concrete figure was for the end of 2023, showing 3,572 employees. Based on that figure, the efficiency metrics were:

• Revenue Per Employee: $331,217
• Profits Per Employee: -$28,348

The company also reported Share-based Compensation (SBC) Expenses of RMB 7.2 million (US$1.0 million) in Q1 2024. Finance: draft 13-week cash view by Friday.

BEST Inc. (BEST) - Canvas Business Model: Value Propositions

You're looking at the core promises BEST Inc. (BEST) makes to its customers, grounded in their latest reported performance as of late 2025, primarily using data from the first quarter of 2024 (Q1 2024) and end-of-2023 operational metrics.

Integrated smart supply chain solutions for end-to-end service is delivered through a network that, as of late 2023, included over 20,000 service outlets and managed more than 3 million square meters of warehouse space within China alone. This technology-driven approach underpins the entire offering.

Efficiency gains through proprietary technology and network optimization are showing up in the financials. For instance, the Freight segment saw its gross margin improve significantly. Here's a quick look at the segment performance from Q1 2024:

The improvement in the Freight segment gross margin to 3.4% in Q1 2024 represented a 3.6 percentage points improvement from the same period in 2023, showing the impact of continued operating expense reduction and efficiency drives.

Reliable cross-border logistics connecting China and Southeast Asia is a major focus. By the end of 2023, BEST Inc.'s global service revenue hit RMB 947 million (USD 133 million). The parcel volume in Southeast Asia grew by 14.6% year-on-year, reaching about 140 million pieces in 2023. The network spans Thailand, Vietnam, Malaysia, Singapore, and the company officially launched cross-border services in Indonesia in August 2024.

Reduced supply chain complexity for e-commerce and enterprises is achieved by expanding this network. For example, BEST Global's revenue grew by 30.2% year-on-year in Q3 2023. The company supports this with localized operations, having over 1,200 service points across its six Southeast Asian countries as of the end of September 2023.

Improved gross margin in Freight segment to 3.4% in Q1 2024 is a concrete financial validation of their value delivery. This specific figure highlights the success in optimizing the core freight operations, which is a key part of the overall Group Gross Profit Margin of 2.8% for that quarter.

You can see the focus on network build-out and service quality through these operational points:

• Network covers six countries in Southeast Asia as of late 2023.
• Indonesia launch occurred in August 2024.
• Southeast Asia parcel volume reached about 140 million pieces in 2023.
• BEST Global revenue growth was 30.2% in Q3 2023.

Finance: draft 13-week cash view by Friday.

BEST Inc. (BEST) - Canvas Business Model: Customer Relationships

For large enterprise and key accounts, BEST Inc. demonstrated a clear shift in relationship management, evidenced by the discontinuation of certain not-profitable key account customers during the first quarter of 2024. This action directly impacted Supply Chain Management Service Revenue, which decreased by 6.6% year-over-year to RMB411.0 million (or US$56.9 million) for that quarter, signaling a prioritization of profitable relationships over sheer volume.

The automated, self-service tools via the BEST Cloud platform are central to managing the broader customer base, aligning with the general industry trend where over 80% of CRM users prefer cloud-based solutions. While specific platform usage metrics for BEST Inc. aren't public following the privatization, the company's mission centers on leveraging its proprietary technology platform to create a smarter supply chain.

For logistics network franchisees, the relationship is structured through a partnership model that includes significant upfront commitment and dedicated training. This structure supports the high-touch service required across the network. Here are the investment and initial support figures associated with becoming a logistics network partner:

The high-touch support for complex supply chain management clients is executed through the operational rigor of the network, which includes specialized handling capabilities. For instance, a specific BEST Express franchise is equipped to handle parcels up to 110 kilograms, utilizing two-person delivery teams for oversized items. During peak campaigns like 11.11, this local operational capacity scales significantly, with the fleet increasing to 30 vehicles from a standard 15 vehicles to manage 800-1,000 parcels daily.

Continuous efficiency reporting and data sharing are embedded in the franchisee relationship, as the company provides a standardized management system certified under ISO 9001:2015. Furthermore, the overall customer-centric approach aims for high satisfaction, as industry data suggests that organizations focused on customer satisfaction see 41% faster revenue growth. The relationship with franchisees is also supported by the ability for them to set their own delivery rates and generate revenue from multiple streams, including cash-on-delivery (COD) services and insurance fees.

Key relationship touchpoints for the broader customer base include:

• Handling large and heavy parcels up to 110 kilograms.
• Fleet scaling up by 100% (from 15 to 30 vehicles) during peak events.
• Providing tailored logistics solutions backed by professional teams.
• Maintaining a service commitment that has led to very few complaints in certain franchise areas.

BEST Inc. (BEST) - Canvas Business Model: Channels

You're looking at how BEST Inc. (BEST) gets its services to the customer base, which is a mix of physical infrastructure and digital access points. Here's the quick math on the scale of those channels, based on the latest available figures.

Proprietary logistics network (hubs, sorting centers, vehicles)

• In China, BEST Inc. operates over 20,000 service outlets.
• The China network includes over 400 cloud warehouses.
• BEST Inc. manages over 3 million square meters of warehouse space in China.

The Southeast Asia network, which is a key focus, has been built up with self-owned assets:

Direct sales teams targeting enterprise and e-commerce clients

The company provides high-quality comprehensive supply chain services for more than 3,000 well-known companies and millions of small and medium-sized enterprises. The Freight segment generated the majority of revenue in the last 12 months ending March 2025.

SaaS platform access for supply chain management customers

BEST Inc. leverages its proprietary technology platform, BEST Cloud, offering SaaS-based applications for network and route optimization, among others. Global service revenue, which includes SaaS solutions, reached RMB 947 million (USD 133 million) in 2023.

Local agents and partners in Southeast Asia markets (e.g., Indonesia)

BEST Inc. has established a logistics network covering the entire territory in Thailand, Vietnam, Malaysia, Singapore, and the Philippines, and expanded to Indonesia in the first half of 2023. Parcel volume in Southeast Asia was about 140 million pieces in 2023, a year-on-year increase of 14.6%. The World Bank projects Indonesia's economy to grow by 5.1% in 2025.

Mobile applications for tracking and last-mile services

The service offering includes last-mile express delivery. Specific 2025 usage statistics for mobile applications are not publicly detailed in the latest reports.

Overall revenue for BEST Inc. in the last 12 months ending March 2025 was $1.18 billion.

BEST Inc. (BEST) - Canvas Business Model: Customer Segments

You're looking at the core groups BEST Inc. (BEST) serves, which are segmented across its four main operational areas: Freight Delivery, Supply Chain Management, Global Logistics, and Others. The latest detailed segment revenue breakdown we have is from the first quarter of 2024, which gives us a solid baseline for understanding the relative size of these groups as we look toward late 2025.

The Freight Delivery segment appears to be the largest revenue generator based on the Q1 2024 figures. This group primarily consists of businesses needing standard freight services, likely including many Small and Medium-sized Businesses (SMBs) using freight services for less-than-truckload or truckload needs within China and increasingly in Southeast Asia (SEA).

The Supply Chain Management customers are manufacturers and large enterprises requiring more integrated, end-to-end solutions. This segment saw a strategic shift in Q1 2024, with revenue decreasing by 6.6% year-over-year to RMB 411.0 million (US$56.9 million), as BEST discontinued certain not-profitable key account customers. This suggests a focus on higher-quality, more profitable enterprise relationships moving forward.

For the E-commerce merchants needing integrated logistics in China/SEA and Cross-border businesses focused on Southeast Asia expansion, these customers fall heavily under the Global Logistics segment. This area is showing explosive growth. Global Service Revenue in Q1 2024 jumped 42.6% year-over-year to RMB 280.9 million (US$38.9 million). The total volume of the cross-border business specifically increased by a massive 256.4% year-over-year in that same quarter, showing a clear strategic priority.

Here's how the revenue contribution looked for the major segments in the first quarter of 2024:

The focus on Southeast Asia is significant. BEST Inc. has established networks across Thailand, Vietnam, Malaysia, and Singapore, and officially launched services in Indonesia in August 2024. This aligns with the broader ASEAN E-commerce Logistics Market, which is estimated at USD 10.25 billion in 2025, with cross-border flows advancing at a 7.10% CAGR.

The Logistics network franchisees operating regional delivery services are key partners rather than direct customers in the traditional sense, but they are essential to serving the end-users. BEST Inc. has built a network that, as of late 2023, supported operations across multiple SEA countries, leveraging its technology platform to manage these partners.

You can see the high-growth areas by looking at the regional parcel volume increases reported for Q1 2024:

• Parcel volumes in Vietnam increased by 120.0% year-over-year.
• Parcel volumes in Malaysia increased by 23.8% year-over-year.
• Southeast Asia parcel volume growth in 2023 was 14.6%, reaching about 140 million pieces.

To be fair, the overall global service revenue in 2023 was RMB 947 million (USD 133 million), showing that while SEA is growing fast, the bulk of the established business still resides in China, which is served by the Freight Delivery and Supply Chain Management segments.

Finance: review Q1 2024 segment margins against the 2023 full-year gross margin for Freight Delivery to project Q3 2025 profitability by next Tuesday.

BEST Inc. (BEST) - Canvas Business Model: Cost Structure

You're looking at the cost side of the equation for BEST Inc. (BEST), and honestly, it's dominated by the physical movement of goods. The structure shows a heavy reliance on variable costs tied directly to the volume they move, which is typical for logistics, but the percentages are telling.

High Cost of Revenue, Freight was 96.6% of Q1 2024 Segment Revenue

The cost of moving freight is the single biggest expense component. For the first quarter ended March 31, 2024, the Cost of Revenue for the Freight segment was RMB1,182.4 million (US$163.8 million), which represented 96.6% of that segment's revenue. This high ratio shows how thin the gross margin is before factoring in operating expenses. For the Supply Chain Management segment in the same period, the Cost of Revenue was RMB383.3 million (US$53.1 million), making up 93.3% of its revenue. That's a tight margin to work with, so efficiency is everything.

Here's a quick look at how the Cost of Revenue broke down by segment for the first quarter of 2024:

Network Operating Expenses (Transportation, Labor, Sorting Center Costs)

While the specific breakdown of transportation, labor, and sorting center costs within the total Cost of Revenue isn't itemized separately in the latest detailed filings, these elements are the primary drivers of that high percentage. The company noted that the 96.6% freight cost of revenue figure in Q1 2024 was an improvement of 3.6 percentage points year-over-year, mainly due to higher volume and improved efficiency, suggesting direct cost control in these operational areas is a constant focus.

Operating expenses, which would include some overhead and fixed components of network costs, were reduced by 11.3% of revenue in Q1 2024 compared to the prior year period, showing an effort to manage overhead relative to sales.

Technology and R&D Expenses

BEST Inc. (BEST) does detail its investment in technology, which underpins its smart supply chain platform. For the first quarter ended March 31, 2024, Research and Development Expenses were RMB29.3 million (US$4.1 million). As a percentage of revenue for that quarter, R&D represented 1.5%. The company has not publicly detailed R&D expenses for periods later than Q1 2024 as of your request date.

Selling, General, and Administrative (SG&A) Expenses

SG&A expenses reflect the administrative and sales overhead. In the first quarter of 2024, these expenses totaled RMB220.4 million (US$30.5 million). This figure represented 11.3% of revenue for the quarter, an improvement from 14.4% of revenue in the same quarter of 2023, which the company attributed to organizational structure optimization.

Key components of SG&A include:

• Selling expenses.
• General and administrative expenses.
• Share-based Compensation (SBC) expenses allocated to SG&A were RMB6.3 million (US$0.9 million) in Q1 2024.

Capital Expenditures for Network Automation and Infrastructure

Capital expenditures (CapEx) are crucial for long-term cost reduction through automation and infrastructure upgrades, which is central to the BEST Inc. (BEST) mission. While the company emphasizes leveraging its proprietary technology platform, specific CapEx figures for network automation and infrastructure for 2025 are not readily available in the Q1 2024 financial releases. However, as of March 31, 2024, the company held RMB2,095.8 million (US$290.3 million) in cash and cash equivalents, providing the liquidity base for future investments in this area.

The focus on technology suggests ongoing, significant, though not explicitly quantified, investment in automation to drive down the high variable costs seen in the Cost of Revenue.

BEST Inc. (BEST) - Canvas Business Model: Revenue Streams

You're looking at how BEST Inc. (BEST) actually brings in money, which is key to understanding its operations, especially given the recent privatization news as of March 2025. The revenue streams are clearly segmented across its smart supply chain offerings.

Freight Delivery service revenue remains the core engine, though its relative contribution can shift based on market conditions. For the full fiscal year ended December 31, 2023, BEST Inc.'s total revenue was reported as RMB 8.32 billion (or RMB8,315.8 million). This represented a 7.38% increase compared to the RMB 7.74 billion revenue in 2022.

Here is a look at the segment revenue components for the fiscal year 2023, based on the latest full-year figures available:

The Freight Delivery segment saw a 10.6% year-over-year increase in revenue for fiscal year 2023, primarily driven by increases in both freight volume and the average selling price per tonne.

Supply Chain Management service revenue, which includes SaaS and fulfillment components, grew by 2% year-over-year in 2023, reaching RMB 1,858.6 million (US$261.8 million). However, looking at the most recent quarterly data for the first quarter ended March 31, 2024, this segment showed a contraction, with revenue declining by 6.6% compared to the prior year period, attributed to the discontinuation of non-profitable key accounts.

Global Logistics service revenue, covering cross-border and international operations, increased by 3.2% year-over-year in 2023 to RMB 946.5 million (US$133.3 million). This growth was mainly due to volume increases in Vietnam, Malaysia, and the cross-border business, partially offset by a decrease in parcel volume in Thailand. The momentum continued into the first quarter of 2024, where BEST Global's revenue jumped by 42.6% year-over-year, with cross-border volume increasing by 256.4% year-over-year.

Other services revenue is the smallest segment. The search results provide a figure for 'Other Revenue' in millions of CNY for the full year 2023 as RMB 106.31 million, compared to RMB 116.81 million in 2022. This segment can include elements like truckload brokerage or financial services, though specific breakdowns aren't detailed in the primary segment reports.

You can see the immediate impact of strategic shifts in the Q1 2024 figures compared to the full-year 2023 results:

• Freight Service Revenue for Q1 2024 was RMB 1,223.5 million (US$169.5 million), up 16.3% year-over-year.
• Total Revenue for Q1 2024 was RMB 1,942.0 million (US$269.0 million), a 13.2% increase from Q1 2023.
• BEST Global parcel volumes increased by 39.4% in Q1 2024 compared to Q1 2023.