My Take | With ‘instant commerce’, China’s first-world infrastructure faces third-world spending

The service is an upgrade from the old food delivery model, as it covers a wider range of products, from fast fashion to everyday items. China could be the world’s first country to make “instant commerce” a reality across major cities, thanks to its advanced transport and warehousing infrastructure, powerful algorithms and an army of delivery workers.

China’s millions of young, hard-working delivery workers also provide the “last mile” service that allows for doorstep delivery at an affordable cost. The working conditions of China’s delivery couriers – the most visible group of the country’s 200 million gig-economy workers – have been the subject of many studies and news reports in recent years, giving rise to the general consensus that these workers have insufficient social security and toil excessively long hours.

Still, investors are not happy about the intensified competition. Since JD.com made a high-profile attempt to take on Meituan with its own delivery force this year, the stock prices of both companies have plunged. Sellers can be forgiven, though, as the competition shows there is little room for additional growth, forcing platforms into a zero-sum fight.