Businesses selling food and providing catering services online are now required to show their food trade licenses and have brick-and-mortar stores, according to China Food and Drug Administration, reported the Beijing News. The requirements came as part of an administrative draft designed to improve supervision of online food and catering services…Full Article: ECNS.cn Feb 2017

Key Points

  • The requirement to force online restaurants to have brick-and-mortar stores is designed to ensure that the major online delivery businesses of Meituan, Eleme and Baidu work with registered/licensed eateries.
  • In 2016, according to the China Food and Drug Administration, China’s online food delivery market reached approximately CNY 152.4 billion [~US$22.1 billion] in revenue.

ChinaAg Comments

  • From December 2016 to early January 2017, the Beijing Food and Drug Administration (BFDA) ordered 225 online meal ordering/delivery businesses to close, as well as 4,409 registered restaurants to “overhaul their practices”. The majority of the offending businesses were registered with Baidu Waimai, Meituan Waimai, and Eleme.
  • 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.

Hong Kong Trends

Similar Posts by ChinaAg

Spread the word. Share this post!