SHANGHAI (Business Emerge/Asia): JD.com has announced a long-term housing support programme valued at 22 billion yuan that aims to expand accommodation access for its delivery workforce. The company detailed the initiative through an update shared publicly on Friday, framing it as part of an ongoing effort to improve conditions for front-line personnel across its logistics network.
The announcement comes during a period of heightened activity in China’s rapid delivery segment, where major technology firms have increased investment throughout 2024. JD.com released the update shortly after Meituan confirmed that it would commit 10 billion yuan over a five-year period to strengthen welfare benefits for its riders. Both companies remain prominent participants in the one-hour retail fulfilment market, a sector that has expanded significantly as consumer expectations for faster delivery continue to rise.
Available data shows that China has an estimated 12 million couriers working across multiple platforms. Industry analysts have noted that demand for fast delivery services has pushed companies to spend heavily on discounts and consumer incentives, affecting margins across the sector. Authorities have previously asked leading firms to moderate their commercial rivalry, citing concerns related to market practices and competitive pressure on operational models.
Over the past several years, the working conditions of couriers have gradually become a topic of national discussion. Public interest has been influenced by films, memoirs and online posts that document the challenges faced by drivers navigating tight delivery timelines. In response to sustained attention, several companies have adjusted their incentive frameworks, shifting from penalty-based systems to models that aim to reward timely service. Firms have also announced the expansion of social insurance coverage for riders.
In Friday’s update, JD.com stated that it has already arranged approximately 28,000 housing units for front-line employees. The company added that it intends to provide 150,000 additional units within the next five years. The plan is expected to include new residential options positioned near logistics hubs in key cities. Meituan currently operates subsidised residential projects under its Rider Apartments programme, offering reduced rental rates in cities such as Beijing, Shenzhen and Chongqing. Some units in the capital reportedly cost around half the typical market rent.
Industry specialists believe these commitments signal a shift in how major delivery platforms are approaching workforce management. Rising competition in the instant retail segment has increased pressure on companies to retain reliable courier networks, as consistent fulfilment speeds remain central to consumer satisfaction. Improving access to accommodation may help reduce turnover by easing one of the most significant cost burdens faced by riders working in major urban regions.
The broader delivery market is expected to continue expanding as online consumption patterns deepen across categories that include groceries, food, daily essentials and electronics. Analysts suggest that additional policy guidance could follow if authorities consider further measures necessary to stabilise the fast retail ecosystem. Firms may also continue to introduce welfare updates as they recalibrate strategies for long-term growth.
