food delivery

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.

China’s food delivery subsidy war is likely winding down. Reports indicate a decrease in the massive discounts that previously characterized the market. While coupons are still available, the period of heavily subsidized deliveries, sometimes offering meals for free, appears to be ending.

A 22-year-old woman in Chongqing, China, lost nearly ten pounds in six days by strategically choosing stair-climbing food delivery orders. This method, lauded online for its effectiveness, combines income generation with weight loss. Experts note stair climbing can be HIIT, improving cardiovascular health and muscle mass. However, due to knee joint stress, it’s not for everyone. Consulting a doctor or fitness professional for a personalized plan is recommended.

China’s food delivery price war is harming restaurants, as reported by CNBC AI News. Xibei’s founder, Jia Guolong, reveals concerns about unauthorized discounts and eroded pricing power. He argues that platforms’ unsustainable tactics damage the restaurant ecosystem, generating waste and squeezing profits. Jia pleads for pricing autonomy amidst regulatory intervention from SAMR urging rational competition. Despite this, reports indicate promotions continue, leaving restaurants struggling for survival.

A recent investigation reveals that some restaurants are offering different food quality for dine-in and delivery orders, using fresher ingredients for in-house customers and cheaper alternatives for takeout. High commission rates charged by delivery platforms are allegedly squeezing restaurant profits, incentivizing this “two-tiered” system. This practice risks a downward spiral in the food delivery industry. Experts urge delivery platforms to embrace transparent fee structures and restaurants to prioritize integrity to ensure consistent quality and ethical operations.

The trending “Free Bubble Tea is Gone” hashtag on Weibo signals a potential shift in China’s food delivery market. Intense subsidy wars between giants like Meituan and Ele.me led to rock-bottom prices, but the State Administration for Market Regulation (SAMR) has intervened, urging a more sustainable competitive approach. Experts question the long-term viability of aggressive discounts, suggesting that neither platforms nor merchants can indefinitely bear the financial burden of these “delivery wars,” which aim to dominate China’s local services market.

Despite regulatory warnings from SAMR to Ele.me, Meituan, and JD.com regarding fair competition, the online food delivery subsidy war continues in China. Taobao Flash Sales maintained its “Super Saturday” promotion, but with tempered subsidies. While “zero-yuan” takeout orders were still possible, discounts were less aggressive than previous weeks. Meituan also reduced its high-value coupons. JD.com offered milder subsidies. The long-term impact of regulation on market competition is yet to be determined.

Meituan’s Core Local Commerce CEO, Wang Putaozhong, revealed the food delivery business operates on thin margins, with Meituan achieving a mere 4% profit margin last year. Growth stems from scaling, not margin expansion. He highlighted the complexity and low per-order profits, contrasting Meituan’s 3% operating profit margin with the struggles of competitors like DoorDash, despite higher commissions. Satisfying merchants, riders, the platform, and consumers presents a constant challenge, making substantial profit margins unrealistic.

JD.com’s food delivery service has replaced its “20-Minute Late, Free Order” guarantee with a ¥4 coupon for delays exceeding 20 minutes. JD.com cites improved on-time delivery performance as the reason for the change and has also lowered the compensation threshold with a new “On-Time Guarantee,” offering compensation for delays beyond 10 minutes. A full-visibility map for order tracking has been integrated. Consumer reactions are understanding, with some showing concerns about delivery riders’ well-being.