Pinduoduo intensifies agriculture modernization drive as 1Q revenue tops estimates, users surpass 800 m
May 26 2021 - 6:36AM
Pinduoduo Inc., China’s largest agriculture platform, pledged to
step up efforts to modernize the agri-food system as it surpassed
800 million in users for the first time.
Revenue for the first quarter rose 239% to 22.2 billion yuan
($3.4 billion) in the three months ended March, beating consensus
analyst estimates. The number of annual active buyers for the 12
months ended March increased to 823.8 million, making Pinduoduo the
most widely used e-commerce platform in China.
“Our growing scale gives us both greater capacity as well as
responsibility to live up to our mission to ‘benefit all’,” said
Chen Lei, Chairman and CEO of Pinduoduo. “As we work towards our
goal of becoming the world’s largest agriculture and grocery
platform, we must also seize the golden opportunity to transform
and modernize the agri-food system.”Chen highlighted food quality
and logistics as two areas where Pinduoduo is devoting its
resources to spearhead change. The company’s direct access to
consumers and over 8.6 million merchants has made Pinduoduo
“uniquely positioned” to bring together top minds from around the
world to develop practical solutions to everyday problems. Many of
these solutions will involve technology, which is the bread and
butter of Pinduoduo, he said. In the area of food, Pinduoduo
announced a research partnership with Singapore’s Agency for
Science, Technology and Research (A*STAR) to conduct a study
examining the health impact of substituting animal proteins with
plant-based proteins. Last year, the two partners embarked on a
project to develop a low-cost and portable way to test for
pesticide residues, which when commercialized would improve food
safety and quality. “This is not our first research partnership and
will certainly not be our last,” Chen said.
Pinduoduo is also developing logistics infosystem and
agri-focused infrastructure solutions that are suited to the
future, just like how it introduced a new era of interactivity
among users, said Chen. The company has “some advantages” as it
originated over a third of daily parcels in China last year and has
expertise in complex technological system design, he said. “We are
looking at how things are done with a fresh pair of eyes, with no
preconceptions,” he said. “As we continue to grow, I believe that
we can use our scale for good.” Duo Duo Grocery, its next-day
pickup service, is seeing strong demand from consumers, who now
have the chance to buy a wider range of perishables directly from
farmers and agri-merchants in the region. Since the service started
in August 2020, Duo Duo Grocery has catalyzed the creation of
millions of jobs up and down the entire supply chain and provided
an additional income stream for existing shops that serve as
collection points.
“We remain committed to our social inclusion efforts and support
for the vitalization of rural communities,” Chen said. “For any
advancement to be truly durable, we must look out for all our
stakeholders. It is critical that we partner and empower them with
tech.”
About Pinduoduo Inc.Pinduoduo is a mobile-only
marketplace that connects millions of agricultural producers with
consumers across China. Pinduoduo aims to bring more businesses and
people into the digital economy so that local communities can
benefit from the increased productivity and convenience through new
market opportunities.
For more information on Pinduoduo news and industry trends,
please visit the content hub at
https://stories.pinduoduo-global.com/.
For media inquiries, please contact:
Pinduoduo Inc.
internationalmedia@pinduoduo.com
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