China’s food-delivery business is booming. So is waste

THREE couriers in hard helmets cram into an office lift in Beijing—one clad in red, one in yellow and one in blue. The trio are dispatching food that was purchased online through China’s most popular meal-ordering firms, which fill urban roads every midday with their colourful delivery people on electric bicycles. Delivery fees as low as three yuan ($0.46) have helped to transform urban lunch-hours. But the booming business is also fuelling concerns about everything from waste to the abuse of workers.

Such services—which enable users of a single site to order food from a swathe of local restaurants—are expanding around the world. But in China the industry is on a tear. By the end of June, the number of registered users had risen to 295m, 40% more than at the end of last year, according to government analysts. The value of meals bought online was about $25bn in 2016 and could rise to around $36bn by the end of next year, says iiMedia, a research firm. The market leaders are Meituan and Ele.me. Both still make losses in food delivery, but they have backing from Tencent and Alibaba respectively—tech giants eager to find ways of pushing customers to their duelling online payment systems.