JD cuts list of qualified logistics services for vendors: media reports

Updated 2017-07-27 09:54:25 Global Times

Chinese e-commerce platform JD.com will cut the list of courier companies that are allowed to provide delivery service for the company, media reports said on Wednesday.

After halting cooperation with courier company TTK Express, JD.com told all vendors in the platform that they must choose courier service companies from its recommended list. The first choice is JD Logistics, the company's own unit, domestic news portal sina.com reported.

Other major delivery companies such as EMS, YTO Express, Best Logistics and Deppon are also excluded from the recommendation list, the reports said. All vendors on the platform are required to sign courier service contracts by the end of July.

However, logistics companies that have reportedly been excluded those ranked high in consumer satisfaction, based on a report by the State Post Bureau, the Beijing Youth Daily reported. For example, Best Logistics ranked No.8 among the 25 delivery companies in the report. Deppon and YTO Express stood at No.9 and No.11, respectively.

Media reports have suggested that the 20 delivery companies remaining on the list are actually competing against JD Logistics.

JD Logistics became an independent business unit in April. In its business plan, 80 percent of revenue is expected to come from third-party service, the Xinhua News Agency reported.

"As an e-commerce platform, JD.com is entitled to improve its logistics service level by evaluating service, identifying issues and resolving problems," read a commentary of the People's Daily on Wednesday in response to JD's reported move. That course of action can help make the platform accountable to both vendors and consumers.

"It's important to bear in mind that the interests of vendors and consumers should not be affected by competition among delivery companies," said the commentary.

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