(Yicai) July 25 -- Han Liu, former chief executive officer of Chinese food delivery platform Ele.me, led a group that accepted over CNY40 million (USD5.6 million) in bribes, according to Shanghai police.

Since July 2023, Han and two other former Ele.me employees had abused their positions to help various suppliers obtain logistics and delivery contracts in dozens of cities. They accepted more than 30 bribes from four suppliers in under two years, police said at a press conference yesterday.

Media reports last month claimed that Han was taken from his Shanghai office by local police for investigation over alleged duty-related crimes. Ele.me later confirmed the reports.

The police cited the results of an internal investigation completed by Ele.me in May, which found that Han and his associates accepted bribes while using their authority to improperly assist suppliers during their time at the company.

After receiving Ele.me’s disclosure, police detained seven suspects alleged to have offered or accepted bribes, including Han. The case remains under investigation and all suspects are in custody.

Han, 37, joined Alibaba Group Holding, Ele.me’s parent company, in 2019. He was promoted to Ele.me’s CEO in March last year after serving as senior vice president for two years. In February, he was demoted to VP due to disappointing business performance, with Chairman Wu Zeming taking over as CEO.

China's food delivery sector is undergoing a new round of price competition this year following the entry of e-commerce giant JD.Com, which has drawn close scrutiny from regulators.

On July 18, the State Administration for Market Regulation summoned Ele.me, Meituan, and JD.Com for discussions, urging the firms to regulate promotional practices and uphold fair competition.

Editors: Dou Shicong, Emmi Laine