Login

Reload

Remember me Forgot it?

Not a subscriber?

Click on the button below to create your account and get immediate access to Xinhua Silk Road Database.

Start a Free Trial

Subscribe

Belt & Road Weekly Subscription Form

Research Report

The full edition of the report is available at Xinhua Silk Road Database. You can click the “Table of Content” to have a general understanding of it.

Click on the button below to create your account and get immediate access to thousands of articles.

Start a Free Trial

companies

HOME > Company


Ride-hailing provider Didi enters food-delivery sector

April 16, 2018


Abstract : Chinese ride-hailing giant DiDi Chuxing launched its food delivery service Didi Waimai in the east China city on April 1, causing fierce competition among food delivery platforms.

timg (5)

NANJING, Apr.16 (Xinhua) -- "There's no such thing as a free lunch." -- except for those in Wuxi recently.

Chinese ride-hailing giant DiDi Chuxing launched its food delivery service Didi Waimai in the east China city on April 1, causing fierce competition among food delivery platforms.

Using a coupon for a 20-yuan discount given to new users, Wuxi resident Wang Lingling ordered a takeout meal of fried chicken and only paid the minimum cost of 0.01 yuan (one yuan equals about 0.16 U.S. dollars).

"The meal was priced at 15 yuan, and the delivery cost was three, which was all covered by the coupon," she said.

Didi's expansion in the food delivery market came after the food delivery company Meituan's move to launch a car-hailing service last month in Shanghai.

Facing competition from Didi, Meituan and other food-delivery service providers such as Ele.me have also been providing discounts.

"Meituan has announced free delivery within the city and Ele.me has offered discounts coupons ranging from 10 to 15 yuan," Wang said.

The competition has been intensified.

A user named "Jennifer" wrote on social messaging service WeChat that the service cannot keep up with the soaring demand caused by the discounts. "I ordered takeout and waited for about two hours."

Some restaurants said they were forced to leave one food delivery platform if they registered on another. Some said they had to cancel orders because they had too many to handle.

The local industrial and commercial department Wednesday held a meeting with Didi, Meituan, and Ele.me, calling for a halt to behavior suspected to be unfair competition and monopoly.

The companies said they would stop inappropriate acts and cooperate with the government to restore market order.

China has been witnessing a boom in the online food delivery industry.

Statistics show the online food delivery market reached 204.6 billion yuan last year, up 23 percent from 2016. The number of registered users is nearly 300 million.


Related Coverage

Focus

Think Tank

  • The Chinese Race to Artificial Intelligence

    August 10, 2018

    China is no longer just a manufacturing power, but a technologically advance...

  • Made in China 2025 and the Belt and Road Initiative

    August 10, 2018

    The industrial policy of “Made in China 2025” clearly focuses on innovatio...

  • Trump cannot push back China with $113m

    August 8, 2018

    Although the “Belt and Road Initiative” has caused some worries and rebou...

  • Beijing’s maritime gifts

    August 7, 2018

    Beijing seems to be strengthening its capacity building at sea.

  • Ask Us A Question

    If you have any questions, please enter them in the box below.

    Reload

    Write to Us

    Do you want to be a contributor to Xinhua Silk Road and tell us your Belt & Road story? Send your articles to silkroadweekly@xinhua.org and share your stories with more people.

    Click on the button below to create your account and get imhttp://img.silkroad.news.cn/templates/silkroad/en2017te access to thousands of articles.

    Start a Free Trial