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China’s Major Food Delivery Platforms Remove Late-Delivery Fines

Summarized by NextFin AI
  • China's food delivery platforms are shifting from cash penalties for late orders to service-based incentive systems to improve rider performance.
  • JD Daojia has launched a pilot program in 25 cities, replacing late-delivery fines with a service score system that encourages positive reinforcement.
  • Ele.me is also testing a similar points-based system to reward productivity, with plans for expansion by October.
  • Meituan aims to eliminate late-delivery fines by the end of 2025, reflecting a broader trend towards positive incentives in the delivery industry.

China’s leading food delivery platforms are revamping how they manage delivery rider performance, moving away from cash penalties for late orders in favor of service-based incentive systems.

JD Daojia, the delivery arm of e-commerce giant JD.com, announced on Thursday that it has launched a pilot across 25 cities, including Shenzhen, Nanjing, Harbin, and Wuhan, replacing traditional late-delivery fines with a “service score” system. Under the new mechanism, riders who deliver orders past the expected time will no longer face direct cash deductions. Instead, points are deducted based on the severity of the delay, encouraging positive reinforcement rather than punitive measures.

In addition to the service score system, JD Daojia said it continues to roll out initiatives to enhance rider welfare. The company provides additional subsidies during extreme weather, runs programs such as rider child care funds, positive reinforcement incentives, and dedicated “rider care stations,” and is expanding its insurance offerings to improve the overall delivery experience.

Ele.me, another major player in China’s food delivery market, has also begun piloting a similar system. According to its official city rider account, the platform is testing a revised service score framework in cities including Nantong, Changzhou, Jieyang, and Jingdezhen. The initiative is designed to replace late-delivery deductions with a points-based system that rewards productivity and performance, and the platform plans to expand coverage to more cities by October.

Meituan, the largest food delivery operator in China, has similarly committed to eliminating late-delivery fines by the end of 2025. The company first piloted the “On-Time Card” in Quanzhou, allowing points deductions for late deliveries while rewarding timely performance. By August 2025, the system had expanded to 22 cities, reflecting a broader shift from a punitive “penalty-first” approach toward more scientific and positive incentives.

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Insights

What are the main reasons behind the removal of late-delivery fines in China's food delivery industry?

How does the service score system work in the context of food delivery platforms?

What impact do cash penalties have on delivery rider performance and motivation?

How are the new incentive systems expected to affect rider welfare?

What are the key features of JD Daojia's new delivery management system?

How does Ele.me's approach to late deliveries compare to that of JD Daojia?

What challenges do food delivery platforms face in implementing a points-based incentive system?

How has rider feedback influenced the changes in delivery management at these platforms?

What trends are emerging in the food delivery industry in response to changing rider management practices?

What might be the long-term effects of eliminating late-delivery fines on customer satisfaction?

How do competitor platforms like Meituan plan to implement their incentive systems?

What role does technology play in monitoring delivery performance and managing scores?

How might these changes influence the competitive landscape of the food delivery market in China?

What are the potential downsides of a service score system for riders?

In what ways could the new policies affect consumer behavior and expectations?

What lessons can be learned from international food delivery platforms regarding rider management?

How do extreme weather subsidies impact rider performance and delivery efficiency?

What similarities and differences exist between the new systems adopted by JD Daojia, Ele.me, and Meituan?

What is the expected timeline for the full implementation of these new systems across China?

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