Since April, mainland Chinese consumers have been spoiled for choice, as instant commerce competition brought dazzling promotional subsidies and speedy deliveries right to their doorsteps.
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Instant commerce – a turbocharged combination of online shopping and swift dispatch – had already made a typical lunchbox order cost around US$1 or US$2, which covered the food and the delivery fee.
On-demand delivery giant Meituan’s “Grouping for Good Meals” campaign, for example, offered a four-dish set meal – with a portion of rice and a drink – for 6.9 yuan (US$0.97) and delivery in just 27 minutes. A delayed delivery of more than 15 minutes would entitle the buyer to 4 yuan in compensation.
According to 30-year-old office worker Bo Wen from Guangzhou, capital of southern Guangdong province, the cheapest order he made online was a cup of coffee that cost 0.01 yuan on Taobao Shangou – the instant commerce service of Alibaba Group Holding, owner of the South China Morning Post.
This week, all three instant commerce platform operators – Meituan, Alibaba and JD.com – started accepting pre-orders for Apple’s recently launched iPhone 17 models. Buyers are expected to receive their new iPhones in as fast as 30 minutes as soon as delivery starts next week.
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That reflected how instant commerce and its main providers have evolved over a short period of time, as they expanded the on-demand delivery coverage beyond food. It marked another step towards the transformation of retailing in China across online platforms and bricks-and-mortar stores.
Unlike past high-profile competition between Coca-Cola and Pepsi, Boeing and Airbus, and Apple and Samsung Electronics, China’s instant commerce service providers have relied on subsidies and a sharpened focus on becoming more efficient to fulfil orders across the country.
