Advertisement
JD.com’s billionaire founder delivers food in publicity stunt to challenge Meituan
The move reflects the e-commerce giant’s commitment to expanding its recently launched food delivery business, analysts say
Reading Time:2 minutes
Why you can trust SCMP
0
Coco Fengin Guangdong
Richard Liu Qiangdong, the founder of JD.com, who has an estimated net worth of US$6.5 billion, donned a uniform to transport meal orders on an electric bike in Beijing on Monday, highlighting the company’s resolve to challenge rival Meituan’s dominance in the delivery services market.
The publicity stunt, which also included a hotpot dinner with delivery workers, received widespread media coverage in China. It follows an unusual war of words between JD.com and Meituan, with the two companies accusing each other of blocking riders from accepting orders on rival platforms.
Meituan was founded by Wang Xing, a Chinese tycoon with an estimated net worth of US$11.2 billion.
The public dispute and intensified competition between two of China’s largest tech giants have drawn renewed public attention to delivery riders’ benefits. Shares of JD.com and Meituan in Hong Kong closed down 6.3 per cent and 4.6 per cent, respectively, on Tuesday, collectively erasing about US$9 billion in market value.
The rivalry, marked by mutual accusations of monopolistic practices and inadequate worker protections, reflects fierce competition in the Chinese market as growth stagnates.
Facing growing competition in the e-commerce sector, JD.com launched its food delivery service in February and reported in March that it had 10,000 full-time riders, with daily orders exceeding 1 million across 142 cities.
Advertisement