China food delivery shifts toward quality and regulatory compliance

The Chinese food delivery industry is undergoing a significant shift toward quality and regulatory compliance. JD Delivery has launched its ‘Treasure Small Eateries’ initiative across 350 cities, featuring over 80,000 high-quality local dining establishments. This move aims to use digital capabilities to connect consumers with authentic, long-standing local eateries that previously lacked online visibility.

Simultaneously, regulatory crackdowns are targeting the ‘ghost kitchen’ phenomenon. Authorities have identified tens of thousands of fraudulent online-only shops operating with fake licenses and virtual addresses. Following investigations that revealed massive cross-regional order transfers through third-party tools, regulators are implementing stricter oversight to eliminate these non-compliant entities. These measures, including new food safety regulations, are intended to protect consumers and ensure fair competition for legitimate physical restaurants.