Beijing’s food safety watchdog has ordered 225 online meal ordering and delivery businesses to close shop since December, local officials said Saturday [7 January 2106]. According to Beijing Food and Drug Administration, most of the problem stores were operating without a license. They were registered on the country’s three largest online catering service platforms — Meituan Waimai, Baidu Waimai, and Ele.me…Full Article: The Global Times Jan 2017

Key Point

  • As a result of the investigation, the Beijing Food and Drug Administration (BFDA) ordered 4,409 registered restaurants to “overhaul their practices”.

ChinaAg Comments

  • In August 2016, Beijing Food and Drug Administration (BFDA) announced they began investigating Baidu Waimai, Meituan Waimai, and Eleme. According to the BFDA, they will investigate restaurants or food providers from all three e-commerce websites. Violations typically entail fines of up to CNY 200,000 (US$30,145) for the hosting e-commerce platforms.
  • In April 2016, Eleme received US$1.25 billion in financing from Alibaba Group Holding and Ant Financial Services Group (Alibaba’s financial division). In addition, Eleme stated it would work with the online payment application Alipay (Alibaba).
  • In March 2016, Eleme was fined CNY 120,000 (~US$18,400) stemming from a November 2015 violation of Chinese food safety laws relating to working with non-licensed Beijing restaurants who uploaded fake photos and addresses.
  • In early 2016, Meituan Waimai operated in approximately 250 Chinese cities.
  • In November 2015, according to Data Center of China Internet (DCCI), Baidu Waimai had a 32% market share, followed by Meituan Waimai at 31.2% and Eleme at 29.8%.
  • As of October 2015, Baidu Waimai had operations in 109 cities.
  • Founded in 2014 and headquartered in Beijing, Baidu Waimai (subsidiary of Baidu Inc., NASDAQ:BIDU) is an e-commerce platform that focuses on food delivery.
  • In July 2011, Eleme expanded into the cities Beijing and Hangzhou, and later into Guangzhou and Tianjin in March 2012.
  • Founded in 2009 and headquartered in Shanghai, Eleme (“Hungry Yet?”) is an e-commerce platform that focuses on restaurant food delivery.

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