JD.com has committed 22 billion yuan ($3.12 billion) to expand housing support for its delivery workers, the Chinese e-commerce giant said on Friday, as competition intensifies in the fast-growing instant retail market.
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The announcement, made through JD.com's official WeChat account, mirrors a similar move by food-delivery platform Meituan, which last month pledged 10 billion yuan over five years to strengthen welfare provisions for its riders.
JD.com, Meituan and Alibaba have been locked in a fierce contest for market share in the one-hour delivery segment, driving companies to spend heavily on consumer subsidies and discounts. The aggressive spending has tightened profit margins and drawn scrutiny from Chinese regulators, who recently summoned the firms and urged them to scale back the rivalry in favour of "rational competition."
The escalating battle has increased pressure on China's estimated 12 million couriers, who crisscross cities delivering everything from drinks to smartphones. Their working conditions have become a prominent public issue, amplified by films, memoirs and viral videos that spotlight the precarious nature of gig-delivery work.
Companies have responded by promising broader social-insurance coverage and revising incentive structures to reward timely deliveries rather than punish delays.
JD.com said it has already provided 28,000 housing units for front-line staff and plans to expand that to 150,000 units over the next five years. Meituan operates subsidised "Rider Apartments" in cities including Beijing, Shenzhen and Chongqing, offering stable and affordable accommodation, with some Beijing rents priced at about half the market rate.
($1 = 7.0558 Chinese yuan)
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