JD.com accuses food delivery competitor of using aggressive tactics

JD.com has uploaded a statement accusing competitor platforms of using aggressive tactics to force part-time delivery riders to avoid working with JD Takeaway. The post did not reveal the names of the platforms. 

This comes as JD.com entered the Chinese food delivery market in February with JD Takeaway. Restaurants that join before May will enjoy zero commissions for the year. JD.com also contributes to the  “5+1” social insurances (五險一金), which include basic pension, basic medical, work injury, unemployment, and maternity insurance, as well as providing accident and health insurance for part-time riders.

In a post on JD.com’s official Weibo account addressed to couriers working with JD Takeaway yesterday (21 April), the company said that a competitor platform has engaged in a "choose one" game (「二選一」遊戲), forcing riders to avoid accepting JD.com’s delivery orders. Those who violate this rule will face penalties, including being banned from the platform. Riders’ income may decrease by around 16% to 25% due to behavior due to the competitor platform's actions, according to the post. 

JD.com added that the competitor platform's actions occurred suddenly, leading to delays in some JD.com delivery orders and resulting in a poor user experience. “We sincerely apologise to affected users. Starting today, all delivery orders that are over 20 minutes late will be free. We have established an emergency response team and will resolve the delivery speed issue within this week,” the post reads. 

To support delivery riders in freely accepting orders and safeguarding their income, JD.com has launched various emergency assistance measures, such as guaranteeing sufficient order volume for riders who have been banned by competitor platforms and increasing the hiring quota for full-time riders from 50,000 to 100,000 over the next three months.

JD.com has also publicly advised a certain unnamed platform, claiming that it chooses to maintain its monopoly and protect its commercial interests, significantly lowering the income of millions of lower-tier riders.

China's food delivery market has been dominated by Meituan, with Alibaba-owned Ele.me as the second-largest competitor in terms of market share, according to Reuters.

Meituan responded on the same day, calling the related accusations "rumours" and emphasising that it does not restrict riders from working on multiple platforms.

Recently, Meituan launched an instant retail brand called "美團閃購", focusing on delivering goods within 30 minutes. Meanwhile, JD.com introduced a eCommerce service named "自營秒送", with plans to hire at least 50,000 full-time delivery riders this quarter.

On 19 April, Meituan refuted rumours claiming it banned riders from accepting orders on other platforms, stating that no food delivery platform worldwide has ever limited riders' options. The company added that riders from platforms such as Meituan and Ele.me all support deliveries for JD.com. Additionally, Meituan accused JD.com of implementing similar restrictive measures and blamed delivery delays on the tight timeframes and steep penalties imposed by JD.com.

MARKETING-INTERACTIVE has reached out to JD.com, Meituan and Ele.me respectively for a statement. 

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