Shanghai jumps into group buying to stay fed during COVID lockdown

Haidilao International Holding

08/04/2022 11:03

By Josh Horwitz
    SHANGHAI, April 8 (Reuters) - When Shanghai first went into
full COVID-19 lockdown last week, Ping Mai wasn't expecting
she'd become her housing compound's unofficial broker for its
meat supply.
    With her and her neighbours stuck at home and struggling to
buy food amid lockdown curbs that have shuttered stores and
dramatically reduced the number of couriers, she is among
millions that are trying to figure out how to buy fresh supplies
on a daily basis. 
    One popular solution has been community group-buying, which
sees residents at the same address band together to bulk buy
groceries or meals from suppliers or restaurants, placing single
orders that could add up to thousands of dollars. 
    Restaurants such Yum China's  9987.HK  Pizza Hut and hot pot
chain Haidilao  6862.HK  , which have had to shut their dine-in
outlets, have jumped on the bandwagon. The former at one point
had offered groups of 10 buyers 120 steaks for 2,900 yuan 
($456). The latter has sold packages of eggs, mushrooms and root
vegetables priced at 58 yuan with a minimum order of 30 sets. 
    Offers spread quickly through social media, and once enough
buyers sign up and make a payment, vendors will dispatch the
order to the complex usually days later, and building security
or volunters will then drop off each order door-to-door.
Sometimes, residents organise couriers themselves. 
    Mai recounted to Reuters how she took it upon herself to
source meat, and rang several suppliers only to learn they had
stopped taking orders. 
    When one finally said it had stock but had a minimum order
of 30 sets priced at 200 yuan each, it sent her into a scramble
into chat groups to find 29 other interested parties.
    She continues to be on the hunt for more offers for her
neighbours, even as she juggles it with her day job.
    "Lots of people are busy with work, and lots of people in
the building are old. I've got time, so I can help," she said. 
    However, many residents are concerned that the government
could shut the practice down, especially as it tries to stamp
out virus transmission.
    Shanghai on Friday announced a record 21,000 new cases and a
third consecutive day of COVID testing as a lockdown of its 26
million people showed no sign of easing, while other Chinese
cities tightened curbs - even in places with no recent
infections. urn:newsml:reuters.com:*:nL2N2W608O 
    Some Shangahi residents said their neighbourhood committees
had sent out messages this week saying they were no longer
allowed to do group buying, citing contagion risks and manpower
issues. At one housing compound, some residents turned away a
truck full of orders made by their neighbours, citing virus
risk. 
    On Friday, an official rumour buster WeChat account, which
is backed by China's internet watchdog, denied that the city
government planned to ban group-buying. 
    Still, Loly Chen, a 26-year-old designer, said such rumours
were stoking anxiety for people such as her, due to the
uncertainty over how long Shanghai's lockdown will last, though
she is content to live on instant noodles for now. 
    "Even though I still have enough food for now, I'm always
worrying about running out."


($1 = 6.3625 Chinese yuan renminbi)

 (Reporting by Josh Horwitz; Editing by Brenda Goh and Kim
Coghill)
 ((Josh.Horwitz@thomsonreuters.com; +86 21 20830007;))