Hangzhou SF Intra-city Industrial, a delivery company on the Chinese mainland, has been recruiting a large number of drivers in Hong Kong by offering higher hourly earnings since entering the market in the city this month.

The launch of SoFast, SF Intracity's new brand in Hong Kong, marks the first time the company has extended its delivery service beyond the mainland.

"Expanding the instant delivery business into the Hong Kong market is an important part of the group's overseas expansion," the company said in a statement.

SoFast will begin deliveries in the densely populated Yau Tsim Mong district in Kowloon and will gradually expand to cover more regions, with the goal of providing citywide coverage by the end of the year.

SF Intra-city, which started as a business unit of logistics giant SF Holding in 2015 and has been operating independently since 2019, provides services including the delivery of food, jewelry, fresh flowers and personal documents to enterprises and individuals.

In the food delivery sector, Meituan, a mainland food delivery service that entered the Hong Kong market last year, had 44 percent of the market in March, making it one of the largest platforms in the city, according to data by market research firm Measurable AI.

To stand out among the intense competition, SoFast promises to offer delivery riders hourly earnings of up to HK$300 ($38).According to price comparison website MoneyHero, Hong Kong food delivery giant Foodpanda offers riders up to HK$105 per hour, while Deliveroo pays delivery employees an hourly rate of up to HK$120.

Drivers registered with SoFast will be allowed to choose their tasks based on their schedules without fixed time restrictions or minimum orders.

Ivan Chu Siu-lun, convener of the Hong Kong Sustainable Development Research Institute, a local think tank, said, "The main reason delivery drivers have a high hourly wage is that the platform generously shares the lion's share of the profits earned, primarily by calculating the value of each delivered item, allowing drivers to earn more for more work."

Logistics expert Zhao Xiaomin said SF Intra-city's hourly wage for drivers is highly competitive in the Hong Kong market.

Contact the writers at thor_wu@chinadailyhk.com