Colin

Lu said JD’s individual parcel pickup business is main

ly concentrated in first and second-tier cities. “JD has missed the good opportunity to expand its third-party logisti

cs business, and there is little room for growth owing to the fierce competition in the segment.”

In October, JD launched parcel delivery services for individuals in 17

cities including Beijing, Shanghai, Guangzhou and Shenzhen, and later extended it to 31 citie

s. In order to use the service, customers would ask for a pickup through the firm’s app.

Yang Daqing, a researcher at the China Society of Logistics, said such adjustm

ent will bring about some negative effects in the short term, but if JD Logistics ha

ndles the issue properly, it will become more competitive after the transformation.

Apart from the salary cut for the delivery unit, JD is seeing a r

ound of shake-ups on its management team. Following recent resignations of its chief technology of

ficer Zhang Chen and chief legal officer Long Yu, the tech giant announced last week that L

am. Following recent resignations of its chief technology officer Zhang C

hen and chief legal officer Long Yu, the tech giant announced last week that L

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