Coronavirus outbreak drives demand for China’s online grocers

A deliveryman dropping groceries from JD.com's 7Fresh chain into a plastic bag as he arrives at a residential compound for an online order, as the country is hit by an outbreak of the novel coronavirus, in Yizhuang town, Beijing, China. — Reuters

Like their counterparts in Silicon Valley, China’s largest tech companies struggled to prove online groceries can be a viable business. Then the novel coronavirus struck.

Its spread has extended a lifeline to a slew of money-burning businesses – many backed by big name venture capital funds and tech giants from Alibaba Group Holding Ltd to Tencent Holdings Ltd – that in some cases were on the brink of collapse in 2019. Millions of consumers shunning supermarkets and meal-delivery services are testing promises by Tencent-backed Missfresh or Alibaba’s nationwide Hema chain to ship fresh food to their doorsteps. Those that deliver can expect many of first-time customers to stay even after the epidemic burns itself out.