Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Live is Caixin Global's real-time news portal, featuring 24-hour breaking news, short-form analysis, and roundups from business and social media in China.

TRENDING
‘Avengers: Endgame’ Has Made 400 Million Yuan in China – And It’s Not Even Out Yet
Huawei Takes Second Crack at Brazilian Smartphone Market
China Confirms Date of Second Belt and Road Forum
LATEST
Politburo Warns of Lingering Pressure on Economy, Vows Support
Huawei Takes Second Crack at Brazilian Smartphone Market
‘Avengers: Endgame’ Has Made 400 Million Yuan in China – And It’s Not Even Out Yet
Sinovation-Backed Education Firm Secures $140 Million in New Funding
China ‘Regrets’ WTO Ruling on Agriculture Trade Restrictions
China Stock Photo Giant Fined for Trying to Copyright Black Hole
China Confirms Date of Second Belt and Road Forum
China Needs to Fight Nonfinancial Money Laundering, Global Body Finds
Buick Rolls Out First Electric Car for China
People’s Daily Website Reports Booming Profit
China’s Starbucks Rival Raises $150 Million in BlackRock-Led Round
National Rules on Online Lending Still Far From Sight
Cabinet Reaffirms No ‘Flood-Like’ Stimulus, Continued Support for Small Firms
Central Bank Injects Less Liquidity Than It Rolls Back
Transit Control System Provider Seeks $1.5 Billion IPO on New Tech Board
China Pushes to Restore Morale at Corruption-Tainted Science Institute
Anbang Cuts Registered Capital, Allowing Creditors to Demand Repayment
Vatican Accepts Invitation to Exhibit at China Horticulture Expo
Taiwan's Richest Man Announces Bid for Top Office, Citing Advice From Goddess
BAIC’s New-Energy Unit Expects Drop in Lower-End Sales as Subsidies Dry Up
Nearly 3 Billion Yuan in Losses Helped Drive JD Logistics to Cut Deliverymen Base Salaries: Richard Liu

By Tang Ziyi / Apr 15, 2019 11:54 AM / Business & Tech

Photo: VCG

Photo: VCG

JD.com’s chief said a 12th straight year of losses at its delivery unit was part of the reason it cut the base salaries of its drivers.

Richard Liu, the founder of the e-commerce giant, said JD Logistics racked up 2.8 billion yuan ($420 million) in net losses last year. This has left the company with enough money to run its business for only two years, Liu said in a public letter released Monday.

"I believe each of JD.com's delivery brothers doesn't want the company (JD Logistic) to go bankrupt," Liu said. "The choice we made demands everyone find a way to lure more orders for the company, to increase the income."

JD.com had previously said the base-salary cut was a strategy to motivate drivers. The cut now means drivers will have to rely solely on commission for their income.

JD.com spun off its logistics unit in April 2017. It can deliver 90% of orders within one day, and covers 99% of China’s population, the company claims.

Related: Yet More Executive Uncertainty at JD.com

Share this article
Open WeChat and scan the QR code
Copyright © 2017 Caixin Global Limited. All Rights Reserved.