By Tracy Qu
Chinese e-commerce giant JD.com has pledged billions of dollars in housing support for riders, sweetening the pot for workers amid an instant-delivery boom that is fueling competition.
The Beijing-based company plans to invest 22 billion yuan, equivalent to $3.12 billion, over the next five years, according to a post on its official WeChat account Friday. The investment will provide 150,000 homes for delivery riders, it said.
Rival food-delivery giant Meituan made a similar commitment last month, saying it would invest 10 billion yuan to improve its couriers' welfare system, including providing pension insurance for all riders and a decent salary.
The moves come as the two Chinese companies, as well as Alibaba Group, have been caught in a food- delivery price war since early this year, which has eaten into profits.
In the third quarter, JD.com's net profit slumped 55% due to heavy spending on food delivery, while Meituan swung to a loss for the first time in nearly three years, reeling from the cost of defending its industry leadership.
Delivery workers' rights and welfare have become a key social issue in China in recent years, and tech companies are responding to these concerns. Labor rights for riders are often complex, which can lead to workers not receiving the support and compensation they are entitled to.
Write to Tracy Qu at tracy.qu@wsj.com
(END) Dow Jones Newswires
December 12, 2025 01:50 ET (06:50 GMT)
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