Beijing Food and Drug Administration (BFDA) say they’ve opened investigations into all three of China’s major food delivery sites — Baidu Waimai, Meituan Waimai, and ele.me — following complaints received from customers in the first half of this year. The platforms are likely to be working with restaurants or food providers which haven’t publicly posted their legal restaurant certifications, says the authority…Full Article: ECNS.cn Aug 2016

Key Point

  • 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.

ChinaAg Comments

  • In April 2016, Baidu Waimai became a distributor of China Quanjude (Group), a restaurant chain known for its Beijing roast duck.
  • 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 2015, China had 770,000 public complaints pertaining to food and medicine (a 37% increase from 2014). Approximately 50% of the food and medicine violations in China were discovered via “public tip-offs.” The majority of the complaints stemmed from companies selling their products online from WeChat and other mobile phone applications. Complaints included operating without a license, substandard products, fake products, false advertising, and poor product labeling.
  • In December 2015, Baidu Waimai announced plans to raise US$300 million to US$500 million in order to develop its food delivery platform.
  • 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.
  • Founded in 2013 and headquartered in Beijing, Meituan Waimai is an e-commerce platform food delivery platform. In early 2016, Meituan Waimai operated in approximately 250 Chinese cities.
  • 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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