Richard Liu, the founder and CEO of JD.com, sent a note to JD Logistics employees early Monday, calling for unity and cooperation from delivery drivers at a crucial time for the company.
According to an internal letter obtained by Chinese media, the e-commerce firm’s logistics arm recorded net losses exceeding RMB 2.3 billion ($343 million) in 2018.
If costs from internal platform, JD mall, are included, that widens to RMB 2.8 billion.
“We have lost money for 12 years in a row… if this continues, the money we raised will only last for two years.
I believe none of our brothers is willing to see us go out of business,” (our translation) Liu said in the letter, which said that the fate of the company hung in the balance.
Liu’s remarks to employees comes just days after JD.com confirmed it would replace its couriers’ fixed base salaries with commission-based compensation, as it aims to increase income from external orders.