Reforms target food delivery platforms

China's top market regulator and four other government authorities have jointly summoned major food delivery platforms and urged them to rectify unfair market practices and better protect the rights of consumers, merchants and delivery staff.

The move comes as JD, known for its e-commerce, has recently expanded into the on-demand delivery sector, intensifying competition with aggressive subsidies and zero-commission policies for select merchants.

The latest meeting, led by the State Administration for Market Regulation, gathered major food delivery platforms including JD, Meituan and Alibaba-backed Ele.me.

Citing prominent problems in the sector's competitive landscape, the meeting called on companies to strictly comply with the country's e-commerce, anti-unfair competition and food safety laws.

Firms were also instructed to strengthen internal compliance, assume greater social responsibility, and engage in fair and orderly market competition.

Li Mingtao, chief e-commerce expert at the China International Electronic Commerce Center, said the meeting represents a proactive step to address early signs of violations and unfair competition in the food delivery sector.

"It sent a clear signal on regulating market behavior and sets an example for fostering a healthier, more orderly platform economy," Li said.

The latest meeting also urged food delivery companies to ensure the legal rights of all stakeholders, particularly consumers and gig workers, for the healthy development of the sector.

Li said that healthy competition will drive the sector and protect the interests of different parties, as can be seen by more players entering the market. Food delivery firms are also starting to compete by demonstrating greater social responsibility, including improving conditions for delivery riders and easing costs for merchants.

"This also bodes well for protecting the rights of gig workers, a group that has long lacked sufficient safeguards. With these delivery drivers getting better conditions, the sector can develop better as well," he added.

Such moves align with the Central Economic Work Conference in December, which explicitly called for systemic regulation of cutthroat competition.

Building upon this move, the 2025 Government Work Report also underscored the removal of market barriers, advocating for strategic actions like eliminating entry and exit obstacles, enhancing factor allocation mechanisms and establishing a unified national market.