Qudian's revenue suffers a decline following its withdrawal from the last-mile delivery sector
Qudian Inc. Exits Last-Mile Delivery Business, Focuses on Profitability and Investment Returns
In a strategic move aimed at rationalizing costs and focusing on sustainable growth, Qudian Inc. has announced the winding down of its two-year-old last-mile delivery business. The decision, primarily driven by increased competition and operational inefficiencies, has resulted in a more than 90% decline in Q2 2025 revenue compared to the previous year.
The last-mile delivery segment, branded as “Fast Horse,” saw revenue drop significantly, with Q1 2025 revenue standing at RMB23.8 million, a 56% decline from Q1 2024's RMB53.8 million. This exit has allowed Qudian to significantly reduce operating expenses, with operating costs falling by about 70%.
Despite the revenue drop, Qudian's net income has increased sharply due to strong interest and investment income generated from its substantial cash reserves (~RMB4.8 billion). The company's profit for the second quarter stood at 312 million yuan, a marked increase from the same period last year.
Qudian's shares rose 5.4% on Wednesday following the report, reflecting investor confidence in the company's new direction. The stock is currently up more than 50% year-to-date.
The exit from the last-mile delivery business is part of a broader move to focus on a leaner business model, improved profitability, and prudent cash management to safeguard its balance sheet. Qudian is now focusing on investment returns rather than the challenging last-mile delivery market.
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Qudian Inc. is shifting its focus from last-mile delivery towards investment returns and profitability, as revealed in their decision to wind down their "Fast Horse" segment due to operational inefficiencies and competition. Moreover, the company aims to lean its business model and manage cash prudently, with a stronger focus on finance and investments.
