JD.com, one of China’s largest e-commerce giants, has announced a major investment in its delivery workforce, pledging 22 billion yuan ($3.12 billion) in housing support for its couriers. This initiative aims to improve the living conditions of delivery riders as competition in the instant retail market continues to escalate.

The announcement was made via JD.com’s official WeChat account on Friday, marking a significant step in addressing the welfare of the company’s extensive courier network. This move follows a similar initiative by food delivery company Meituan, which pledged 10 billion yuan over five years to enhance its welfare system for delivery riders.

---

Rising Competition Among China’s E-Commerce Giants

JD.com, Alibaba, and Meituan are currently engaged in a fierce battle for market dominance in the instant delivery sector, which promises delivery of goods within just one hour. This intense rivalry has driven companies to pour billions into consumer subsidies, discounts, and incentive programs, putting pressure on profit margins and attracting regulatory scrutiny from Chinese authorities.

Officials have urged these companies to scale back their competitive practices and engage in what is being described as “rational competition”. Despite these warnings, the race for market share continues, highlighting the central role couriers play in maintaining rapid delivery standards across the nation.

---

The Plight of Delivery Couriers Gains Public Attention

China’s estimated 12 million couriers often navigate the country’s busy streets on bikes, scooters, and electric vehicles. Wearing bright uniforms that reflect their company—yellow, red, orange, or blue—these riders deliver everything from meals to electronics in record time.

Public awareness of couriers’ challenging work conditions has grown in recent years, fueled by viral videos, memoirs, and films highlighting the physical and financial pressures faced by these workers. As a result, companies have begun improving social insurance coverage, revising incentive programs, and implementing housing support schemes to make the profession more sustainable.

---

JD.com’s Housing Support Program

JD.com reported that it has already provided 28,000 housing units for its frontline employees. Over the next five years, the company plans to expand this initiative to offer 150,000 units. These units are designed to provide affordable, secure, and convenient living spaces for couriers, ensuring that their welfare improves alongside their work responsibilities.

Similarly, Meituan has implemented its subsidized “Rider Apartments” program in major Chinese cities such as Beijing, Shenzhen, and Chongqing. In Beijing, for example, some rental units are offered at 50% of the market rate, allowing couriers to access safe and affordable housing while continuing to meet demanding delivery schedules.

---

Implications for the E-Commerce Industry

JD.com’s $3.12 billion housing initiative reflects a broader trend in China’s e-commerce industry, where companies are increasingly investing in employee welfare to retain talent and meet regulatory expectations. These programs may also influence other players in the sector to adopt similar policies, potentially setting a standard for courier support and corporate social responsibility.

By addressing the needs of their delivery workforce, e-commerce giants like JD.com and Meituan not only improve employee satisfaction but also enhance operational efficiency, ultimately benefiting consumers who rely on instant delivery services.