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JD Joins On-Demand Delivery Service Sector, Welcomes Anyone with a Bike

| May 16, 2015 07:10 AM EDT

Delivery companies will now be required to register the names of all people who avail of their services.

JD, one of China’s leading e-commerce companies, has recently entered the on-demand delivery service sector with Dao Jia, which allows anyone with a bike, above 18 years old and smartphone-equipped, to become one of its couriers.

According to JD, Dao Jia will be accepting delivery workers given that they will also pass a training examination, adding that the service's scope will cover Beijing and Shanghai.

Akin to UberX, the Chinese firm's couriers can work at their own hours and accommodate as many orders as they could. However, JD opted not to disclose further information on which orders will be completed by its freelancers or by its in-house delivery group.

JD has not also mentioned of commissions but noted that it will give subsidies worth 6 yuan for every accomplished order.

The e-commerce firm's aggressive investment comes as the on-demand delivery service sector is becoming more prosperous in the country.

JD regards these firms as "major partners" for its own Dao Jia, which was previously known as Pai Daojia. However, the extent of the collaboration among the three is not yet clear.

Meanwhile, for some analysts, this move by JD seemed to be uncharacteristic, doubting whether this marks a genuine commitment or only a mere experiment for the e-commerce firm that has been known for its same-day delivery guarantee.

Whether JD's decision is on full gear, the company will not be the first to enter the crowd-sourced delivery. A Sichuan-based startup, Renren Kuaidi, has been on the business and has raised a total of $15 million to date.

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