On-demand Delivery

Ele.me is rebranding its delivery personnel as “City Knights,” investing in enhanced benefits, incentives, welfare, and career development. This includes redesigned uniforms and recognition programs, aiming to professionalize the rider role. The move coincides with significant growth for both Ele.me and Taobao Flash Sales, with a 3.5-fold increase in active riders and a 40% surge in average rider income. Numerous brands across various sectors are leveraging Taobao Flash Sales, leading to substantial transaction volume increases. The “City Knight” initiative seeks to solidify Ele.me’s market position and address worker rights concerns.

Leading Chinese on-demand delivery platforms, including Ele.me, Meituan, and Taobao Flash, have jointly announced an end to “malicious competition” after regulatory scrutiny. The companies pledge to standardize promotional activities, prevent unfair competition, and ensure fair industry practices. Key areas of focus include strategically planned subsidies, rejecting unfair competition, improving service quality, and fostering a win-win ecosystem. This shift follows a meeting with China’s State Administration for Market Regulation (SAMR), which mandated compliance with relevant laws and regulations.

A LatePost report reveals an intense battle between Meituan and Taobao in China’s on-demand delivery sector, focusing on “lightning warehouses.” These online-only convenience stores offer rapid delivery of essential goods. The platforms are fiercely competing for key merchants, employing tactics such as pressuring them to adjust prices or limit rival platform operations. Merchants express concerns about platform dominance and data control, navigating the pressures of this competitive landscape. The future of this rivalry and merchants’ roles remain uncertain.

China’s SAMR summoned executives from Ele.me, Meituan, and JD.com, emphasizing compliance with laws like the E-Commerce and Food Safety Laws. Regulators urged responsible practices, standardized promotions, and fair competition to foster a healthy ecosystem. This follows heightened competition in the on-demand delivery sector, with platforms launching promotional campaigns. Meituan’s instant retail order volume reached 150 million on July 12th. Meituan CEO Wang Putao expressed reluctance towards the ongoing “delivery war”.

China’s on-demand delivery market is experiencing intense competition as Meituan, Fliggy (Alibaba), and JD.com engage in a subsidy war. This weekend saw a surge in promotional offers, benefiting consumers seeking immediate delivery services. The players are vying for market share by attracting users with heavily discounted prices and incentives. The long-term impact of this subsidy battle on the on-demand delivery landscape remains to be seen.