Caixin
Jul 24, 2017 07:41 PM
BUSINESS & TECH

Quick Take: Courier Lashes Out After JD.com Bans Its Service

Photo: IC
Photo: IC

One of the smaller private couriers in China’s booming parcel-delivery industry is crying foul over online shopping giant JD.com Inc.’s sudden rejection of the firm’s services.

In a complaint to the State Post Bureau on Friday, Hangzhou-based delivery company Tiantian called JD.com’s Wednesday decision — requiring merchants on its platform to refrain from using Tiantian’s services — a “severe violation of market order.”

The spat is another example of heated competition as Chinese e-commerce companies increasingly extend their businesses into the delivery of the items they sell, shutting out couriers that are aligned with rivals.

In January, Tiantian was acquired by retail chain Suning Commerce Group, which in recent years has contended with JD.com for online shoppers looking for trustworthy brands in consumer electronics, household utilities and imported foods and cosmetics.

JD.com runs its own distribution network, which it recently restructured into JD Logistics, and handles the delivery of products sold in-house, which accounts for more than half of the merchandise on its platform. Independent merchants on JD.com usually employ a private courier of their own choice.

In a notice to merchants on Wednesday, JD.com told independent vendors to cease using Tiantian because of its “poor quality of service” and to switch to another firm before July 25.

In a statement on Thursday, Tiantian called JD.com’s claim “a ridiculous excuse,” citing a recent report by the post bureau that noted rising user satisfaction for Tiantian’s services.

Though known foremost for the sluggish service of China Post, which it regulates, the State Post Bureau is an important peacemaker when companies in the fiercely competitive industry quarrel. In June, the bureau mediated a dispute between Alibaba-backed logistics tracking company Cainiao Networks and China’s largest private courier, SF Express.

Contact reporter April Ma (fangjingma@caixin.com)

You've accessed an article available only to subscribers
VIEW OPTIONS
Share this article
Open WeChat and scan the QR code
GALLERY
Copyright © 2019 Caixin Global Limited. All Rights Reserved.