Lates News

On September 16, JD.com, in collaboration with Guizhou Maotai, held a "JD Wine Tasting Event". Liu Qiangdong, the founder of JD Group, mentioned at the event that he has always been particularly interested in the catering industry because of his love for cooking. He mentioned that he had unintentionally discovered that some food delivery platforms were taking as much as 25% commission from restaurants. "Because my first venture was a restaurant, I am well aware that most people in the catering industry are small family-owned businesses. A couple might save up 500,000 RMB over 20 years, rent a space, renovate it, and start a restaurant. In fact, very few restaurants in the country have a net profit margin of 25%." Liu Qiangdong stated that the profit margins in the catering industry cannot reach 25%, but platforms taking such a high commission has led to compromised food safety, resulting in ghost restaurants and food establishments having to compromise on quality in order to survive the high commissions imposed by the platforms. (Sina Technology).