SOURCE / ECONOMY
Chinese e-commerce giants mobilize to help smooth Shanghai shipment bottlenecks
Published: Apr 17, 2022 08:04 PM

A delivery man delivers goods in Shanghai on April 10, 2022. Photo: VCG

A delivery man delivers goods in Shanghai on April 10, 2022. Photo: VCG

Chinese e-commerce giant JD.com Inc is taking a pioneering role in drafting couriers from around the country to come to Shanghai to help deliver food and essential supplies, and it is expected that other players in the delivery sector will also work to help alleviate the labor shortage in the city amid a severe COVID-19 outbreak.

The company’s Asia No.1 warehouse located in Jiaxing district resumed operation under close-loop management following strict epidemic prevention measures, the paper.cn reported on Tuesday. 

According to the report by the paper.cn, the Asia No.1 warehouse is one of the biggest e-commerce warehouses in China, a significant logistics hub for JD.com in the Yangtze River Delta region. The operation of the site was previously suspended as the warehouse was linked to a local outbreak.

JD Logistics has recruited and mobilized 3,246 front-line personnel such as couriers and sorters nationwide, who will go to Shanghai to help out within a week. Most have already arrived, the company said over the weekend.

All of these workers have been vaccinated three times. They are not quarantined on the spot when entering Shanghai, but can deliver goods normally under the condition of complying with anti-epidemic measures.

Now with the couriers in place and the help of the Shanghai municipal government, JD.com's capacity will be further supplemented. It is expected that the delivery workforce recover to 60 percent of pre-epidemic levels in Shanghai on Sunday and reach about 80 percent next week.

"From the perspective of business competition, this is also the best opportunity for JD.com to distinguish itself from its competitors," Xu Yong, chief advisor of cecss.com, a logistics market research platform, told the Global Times on Sunday. 

"Given JD Logistics' competence in the express area, I think the way it is helping Shanghai could last for a while," Xu said, noting that some third-party delivery companies could also explore such a mobilization.

Alibaba's Cainiao network has also formed a special fleet to help the elderly in Shanghai, delivering essential goods for them. In less than a month, Cainiao truck drivers have delivered nearly 10 tons of urgently needed supplies for the elderly.

Chinese e-commerce platform Suning is also mobilizing a delivery workforce for Shanghai. As of Friday morning, the first group of workers mobilized by Suning had arrived in Shanghai to help ensure the supply and distribution of materials.

The Shanghai municipal government is working to open up nodes and help e-commerce platforms increase their capacity on the premise of meeting anti-epidemic requirements.

So far, 42 warehouses of e-commerce platforms in Shanghai have resumed operations. Supply-related workers are gradually returning to their posts. There are more than 18,000 takeaway riders on duty, and the daily delivery order volume is about 1.8 million, data from the Shanghai Municipal Commission of Commerce showed.

Shanghai has also endeavored to promote the on-site operations of key supply-focused enterprises. As of Friday, 1,011 key supermarkets and stores had reopened, and the number of employees increased by 37 percent.

Global Times