JD.com’s aggressive expansion into China’s food delivery sector has sparked an intensifying battle with rivals Meituan and Ele.me, prompting regulatory scrutiny amid accusations of unfair competition and mounting subsidies.
Why it matters: JD.com’s push into food delivery comes as it seeks to diversify beyond its core e-commerce business segment. With competition in China’s internet sector intensifying, major platforms face mounting pressure to grow responsibly while safeguarding the rights of gig workers. Recent regulatory scrutiny highlights growing concerns over unfair competition and labor protection in China’s trillion-yuan platform economy.
Details: On May 13, China’s State Administration for Market Regulation summoned JD.com, Meituan, Ele.me, and other major delivery platforms for a meeting with the Cyberspace Administration, Ministry of Commerce, and other government agencies.
- The authorities urged companies to strictly comply with laws including the E-commerce Law, Anti-Unfair Competition Law, and Food Safety Law. Platforms were told to strengthen internal oversight, compete fairly, and protect the rights of consumers, vendors, and delivery riders.
- JD.com’s revenue grew at its fastest pace in three years after stimulus measures from Beijing and an aggressive drive to compete with Meituan in food delivery helped revitalize consumer spending.
- On May 13th, JD.com released its financial results for the first quarter of 2025, reporting revenue growth of RMB 301.08 billion, a 15.8% increase compared to the same period in 2024. JD CEO Sandy Xu Ran said on the earnings call that the company is aiming to reach 20 million daily food delivery orders in the near future, after hitting 10 million daily orders in late April.
Context: On February 19, JD.com announced that starting March 1, 2025, it will gradually begin providing full social security benefits – including pension, medical, unemployment, work injury, and maternity insurance, as well as housing fund contributions – for its full-time food delivery riders. Part-time riders will be covered by accident and health insurance. Following similar benefits for its parcel couriers, JD has become the first platform in China to offer full social security coverage for food delivery riders.
- That same day, Meituan announced plans to gradually roll out social security coverage for full-time and stable part-time delivery riders across the country, with implementation to begin in the second quarter of 2025.
- On April 21, JD.com alleged that a rival platform had once again engaged in “pick one” practices, forcing delivery riders to stop accepting JD’s express delivery orders under threat of being blacklisted. JD stated that riders have traditionally relied on the freedom to take orders from all three major platforms to maintain their income, and such exclusivity tactics could reduce riders’ earnings by 16% to 25%. The company expressed sympathy for affected riders, labelling the rival platform’s behavior as illegal and unfair. The “rival platform” referenced by JD was widely interpreted as referring to Meituan.
- Meituan responded by saying that no platform has the incentive or ability to restrict food delivery riders’ freedom to choose which orders to accept.
- On April 30, Ele.me announced that it would further increase its platform subsidies.
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