JD.com Faces Regulatory Scrutiny Amid Heated Food Delivery Battle with Rivals
JD.com’s aggressive expansion into China’s food delivery market has intensified competition with incumbents Meituan and Ele.me, triggering regulatory intervention. On May 13, Chinese authorities, including the State Administration for Market Regulation, summoned major platforms to urge compliance with anti-unfair competition laws and protect worker rights. This scrutiny follows JD.com's strategic push to diversify beyond e-commerce, resulting in a 15.8% revenue increase to RMB 301.08 billion in Q1 2025. JD aims to reach 20 million daily food orders soon, up from 10 million in late April. The rivalry has sparked accusations of unfair practices, with JD alleging that a competitor, widely interpreted as Meituan, forces riders into exclusivity agreements. In response to labor protection concerns, JD became the first platform to offer full social security benefits to its full-time delivery riders starting March 2025, prompting Meituan to announce similar plans. Meanwhile, Ele.me has increased subsidies to maintain market share. The situation highlights growing regulatory focus on fair competition and gig worker welfare in China’s trillion-yuan platform economy, balancing corporate growth with social responsibility.
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JD.com Faces Regulatory Scrutiny Amid Heated Food Delivery Battle with Rivals
JD.com’s aggressive expansion into China’s food delivery market has intensified competition with incumbents Meituan and Ele.me, triggering regulatory intervention. On May 13, Chinese authorities, including the State Administration for Market Regulation, summoned major platforms to urge compliance with anti-unfair competition laws and protect worker rights. This scrutiny follows JD.com's strategic push to diversify beyond e-commerce, resulting in a 15.8% revenue increase to RMB 301.08 billion in Q1 2025. JD aims to reach 20 million daily food orders soon, up from 10 million in late April. The rivalry has sparked accusations of unfair practices, with JD alleging that a competitor, widely interpreted as Meituan, forces riders into exclusivity agreements. In response to labor protection concerns, JD became the first platform to offer full social security benefits to its full-time delivery riders starting March 2025, prompting Meituan to announce similar plans. Meanwhile, Ele.me has increased subsidies to maintain market share. The situation highlights growing regulatory focus on fair competition and gig worker welfare in China’s trillion-yuan platform economy, balancing corporate growth with social responsibility.
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