food delivery

Amidst challenging market conditions for restaurants, a multi-platform food delivery environment is emerging, empowering brands like Xin Faxian to reclaim control. This shift breaks traffic monopolies, granting restaurants increased visibility and access to new customers. Platforms compete on service and data transparency, fostering a healthier delivery ecosystem. Xin Faxian leverages these platforms for tailored marketing and product strategies, focusing on fresh ingredients and seasonal offerings, driving revenue and brand discovery. This competition marks a move towards a sustainable, high-quality delivery era for the restaurant industry.

Aggressive promotions in the food delivery market benefit consumers but harm restaurants. Despite increased order volumes, restaurants report decreased profits and losses due to platform fees and subsidies. CCTV highlighted examples where restaurants barely break even or lose money on takeout orders. Many feel compelled to participate to stay competitive, even at a loss. Experts warn this “burn-to-acquire” strategy is unsustainable and risks compromising service quality. The practice offloads costs onto merchants and drivers, intensifying competition.

Shanghai delivery drivers are protesting a mandatory shuttle system at the Renheng Park Century complex, which adds time and reduces earnings. Drivers must board a shuttle, deliver in order with security, while others wait. Some drivers refuse deliveries there. The property management justifies the policy, citing high rider flow compared to couriers, but Meituan is working to balance resident experience and rider rights in this luxury development.

Leading Chinese food delivery platforms, including Meituan, Ele.me, and JD.com, have signaled a potential end to subsidy wars by publicly committing to curb unfair competition and “zero-dollar” promotions. They pledged to regulate promotional activities, respect market dynamics, guarantee reasonable profits for merchants, and focus on healthy competition driven by quality and service. The platforms aim to build a sustainable ecosystem through technological empowerment and supply chain innovation instead of relying on aggressive subsidies.

Chinese consumers are increasingly criticizing restaurants for alleged “double standards,” using fresh ingredients for dine-in customers but cheaper, frozen substitutes for takeout orders. The Jiangsu Provincial Consumer Rights Protection Committee (JSCRPC) argues this differential treatment violates consumer rights to fair dealing and transparent information. Key concerns include ingredient quality discrepancies, smaller takeout portions, and inflated delivery prices. The JSCRPC emphasizes that consumers deserve consistent quality regardless of consumption method, and experts warn against exploiting informational asymmetry, raising issues of transparency and ethical practices in the food delivery sector.

Beijing food delivery riders are experiencing increased earnings due to a surge in orders, particularly after the launch of Taobao Flash Sales. Some riders are earning over ¥30,000 monthly. A forum highlighted the positive cycle created by healthy competition: platform growth, increased merchant revenue, higher rider incomes, and enhanced consumer benefits. Data shows a significant rise in riders and their income, boosting employment and consumer confidence. Merchants also report increased revenue and easier agent recruitment.

The end of subsidized food delivery services has led to a surplus of used electric scooters appearing on Chinese online marketplaces like Xianyu. This oversupply is a direct result of platforms reducing subsidies that previously incentivized delivery drivers to purchase the vehicles. The proliferation of used scooters indicates a significant shift in the economics of the food delivery sector.

JD.com launched Seven Fresh Kitchen in Beijing, a new approach to food delivery amid intense market competition. It licenses signature dishes from established restaurants, handling ingredient sourcing, preparation, and delivery. This aims to address consumer concerns over “ghost kitchens” by providing transparent kitchens and focusing on quality. By partnering with restaurants and ensuring their profitability, JD.com leverages its supply chain and brand reputation to offer reliable, high-quality takeout, potentially changing the dynamics of the online food market. Initial response indicates strong consumer demand.

JD.com launched its “Wan Dian Plan,” investing over 10 billion yuan ($1.4 billion USD) in the food delivery sector. This ambitious initiative signifies JD.com’

JD.com is entering the food delivery market, addressing consumer concerns about safety and hygiene by partnering exclusively with established restaurants. They’ve launched “Seven Fresh Kitchen,” a delivery-focused concept, and plan to establish 10,000 locations in three years. JD.com is investing heavily in its supply chain and a “Recipe Partner” program to ensure quality. Their strategy includes rigorous quality checks, hygiene protocols, and 24/7 kitchen livestreams, emphasizing safe and delicious meals.