Happy Nice Mall

But last year things started to go wrong. Despite the scam and money, these companies struggled to make a profit as lockdowns eased and people returned to shopping in person. Worse still, they’ve been caught in China’s new fight against antitrust behavior. The Chinese government acted quickly. to fine and pen editorials questioning the value of the industry.

As a result, once promising startups and big tech companies have decided to cut back on their expansion plans, impose massive layoffs, or file for bankruptcy outright. DiDi and Ele.me, two successful tech companies that have bet on the online market as their new growth driver, have decided to shut down these services. At least two more online grocery startups shut down their businesses in the past year.

Recent quarantines are giving the industry a second chance. With other Chinese cities like Beijing and Hangzhou facing lockdowns as well, millions of people are once again downloading these apps and relying on them on a daily basis. In fact, Dingdong’s app climbed to third place in the App Store’s free app chart in China at the beginning of April.

daily warfare

While more fortunate Shanghai residents could get free one-time grocery packs from their employers or local governments, most people like Song needed to find a way to purchase their own groceries. some residents neighborhood groups created through messaging appscollect everyone’s order and buy in bulk directly from nearby farms or food factories.

However, Song soon realized that buying food with all his neighbors meant he couldn’t make his own choices. More than three-quarters of the people live in an older residential area, where they are elderly people or families with children. While his neighbors placed family-size orders for things like five pounds of pork, such purchases would consume him forever.

Then the only other option for him is market apps. Every day, Dingdong, Hema, and Meituan frantically beat Maicai to find a home.

But even ordering these apps takes luck and dedication, as the quarantine has disrupted the supply chain for many goods, including grocery stores. Like Black Friday customers waiting to open their store doors, Shanghai residents flock to the apps at the appointed time to try to buy as much as they can before stocks run out in seconds. It can be stressful and frustrating.

Li, a consultant in Shanghai who uses his last name only because he wants to remain anonymous, got up early every morning for a week to try his luck with half a dozen different apps. But while she didn’t get a successful order during the quarantine, her mother, who lived under the same roof, managed to get three. There was a time when Li put hundreds of RMB’s worth of groceries in his shopping cart – but by the time he got to checkout, all he had left in stock was a bag of candy.