Kathy Xu, one of China’s top venture capitalists and an investor in food companies like Meituan, Yonghui Superstores Co. and DingDong Maicai, turned to a WeChat community group for bread and milk., according to a post seen and verified by Bloomberg News. Capital Today, the $2.5 billion company he founded, did not immediately respond to a request for comment.
Xu’s post reflects that food shortages are hitting higher-income city dwellers following middle-class residents have been struggling for weeks.
Shanghai is the epicenter of China’s worst outbreak since the early days of the pandemic in Wuhan and authorities have doubled down on their Covid Zero pillars of mass testing and lockdowns to try and stamp out infections. The situation has quickly turned into a logistical nightmare as the city’s 25 million residents – sealed off in their homes for 22 days – struggle to get basic food supplies delivered to them and officials try to censor growing discontent. of the population.
Authorities have stepped up assistance in recent days, with some residents receiving packages including eggs, milk, vegetables and meat. But some areas of the city have not received them and delivery apps can’t keep up with the growing number of people trying to get their hands on essentialssince the drivers are also blocked.
This has led to an increase in group buying, in which a residential complex coordinates bulk purchases and distribution, typically through a WeChat group.
David Fishman, a 32-year-old energy industry consultant, has just bought 4,200 yuan ($660) worth of bread for himself and more than 60 neighbors, who expect it to be delivered on Saturday. He is in three other grocery groups, and is still waiting for other bulk orders of vegetables and pork to be delivered, as well as the milk promised by the local committee of residents.
Reaching deals with wholesalers is usually not a problem, as long as orders meet their minimum price, according to Vivian Feng, who has led group buying efforts for her residential complex since the lockdown in mid-March. However, some residents may resist spending or decline requests for other reasons, which may be a management issue, she said.
Although buying groups have been effective in getting food to residents, even they are being overwhelmed by demand.
“I was only able to join the buying group in our residential compound once,” said Miranda Zheng, who lives in the eastern part of Shanghai and has been in quarantine for nearly 10 days. “I found a delivery man in Meituan and I tip him hundreds of yuan every day to send me food.”
Officials said on Friday that rumors Shanghai was halting group buying were false, and have previously promised to step up supply efforts.
At a Shanghai municipal briefing on Thursday morning, Mao Fang, vice president of Chinese e-commerce giant Meituan, said the food delivery company would bring in 1,000 sorting workers from outside the city to speed up deliveries. Shanghai Vice Mayor Chen Tong has also said the city is working with online platforms and supermarkets to set up special emergency channels to meet the needs of residents, especially the elderly and infants.
Group buying is one of the few ways families can access enough food during lockdownbut its reliance on fast texting puts some at a disadvantage.
“It’s definitely very difficult for the elderly to use, as it totally relies on a lot of communication through WeChat groups, where 200 people’s information flies at 20 messages per second,” Fishman said. For these people, “how are they supposed to get vegetables? How are they supposed to get food during this period?” he said.
(c) 2022, Bloomberg
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