JD.com, one of China’s massive e-commerce companies, pledged 22 billion yuan ($3.12 billion) to help provide housing for its delivery drivers. The company announced the plan on its official WeChat account this Friday, signaling a shift in how tech giants treat their workforce amidst intense market competition.
This move follows a similar promise from rival food delivery firm Meituan. Last month, Meituan committed 10 billion yuan over the next five years to build a better welfare system for its riders. JD.com, Meituan, and Alibaba are currently locked in a fierce battle for the “instant retail” sector, racing to deliver goods such as iPhones and groceries to customers within an hour.
The rivalry has pushed these companies to spend billions on discounts to win customers, but the aggressive spending is hurting profits. It also caught the attention of Chinese regulators. Officials recently met with JD, Meituan, and Alibaba, urging them to cool down the price wars and compete more rationally.
The pressure of this business model weighs heavily on China’s 12 million couriers. These drivers, easily spotted in the bright red, yellow, or blue uniforms of their employers, face difficult working conditions. Their daily struggles have become a major topic in China, inspiring hit movies and viral videos that highlight the instability of their jobs.
In response to public concern, the companies are making changes. Some have adjusted how they pay drivers, focusing on rewards for on-time service rather than fines for lateness. JD.com’s new initiative focuses on living conditions. The company stated it has already provided 28,000 housing units for front-line staff and plans to provide 150,000 more over the next five years.
Meituan is running a similar “Rider Apartments” program in cities like Beijing and Shenzhen, offering secure housing at roughly half the market rent. As the tech giants fight for market share, they are now also competing to show they can take care of the people who actually deliver the goods.
