JD.Com Opens Its Vast Parcel Delivery Network to Individual Senders
(Yicai Global) Oct. 18 -- The logistics arm of Chinese e-commerce giant JD.Com plans to allow individuals to send packages via its deep distribution network as it strikes up yet another rivalry with Alibaba.
JD Logistics will allow non-corporate users in Beijing, Shanghai and Guangzhou to send inter-city packages across the Chinese mainland using their smartphone, the delivery arm’s Chief Executive Wang Zhenhui said at the 2018 Global Smart Logistics Summit today. It plans to use its extensive delivery network, which covers 99 percent of China’s 1.4 billion population, to users nationwide in future.
The move will pit JD against its arch-rival Alibaba, another of China’s top-performing online retailers, in yet another sector. The two firms both operate their own delivery arms to optimize delivery times and track packages through their e-commerce platforms, but until now, Alibaba’s Cainiao Smart Logistics was the only one permitting non-merchants to send packages.
Package deliver services attract big bucks in China, and are still growing rapidly. Couriers delivered more than 22 billion parcels in the first half of this year, more than full-year shipments in 2015, according to official data.
The sector is just one in which the two firms compete outside their primary e-commerce businesses as they look to becoming king of the hill in China’s New Retail sector -- which combines online and offline retail with smart technologies like artificial intelligence and digital payments.
Editor: James Boynton