Pinduoduo

Pinduoduo Inc. (Chinese: 拼多多; Pinyin: Pīn duōduō) is a Chinese online retailer with a focus on the traditional agriculture industry.[2][3][4][5] It's an e-commerce platform that connects farmers with consumers directly.[6][7]

Pinduoduo Inc.
Native name
拼多多
TypePublic company
Industry
Founded2015 (2015)
FounderColin Huang
Headquarters
Shanghai
,
China
Key people
Lei Chen[1]
Products
Revenue18,929,071,000 United States dollar (2022) Edit this on Wikidata
4,407,864,000 United States dollar (2022) Edit this on Wikidata
4,572,589,000 United States dollar (2022) Edit this on Wikidata
Number of employees
7,986 (2020) Edit this on Wikidata
ParentPDD Holdings
Websitewww.pinduoduo.com

The company is the flagship product of PDD Holdings, which also owns Temu.[8] It generated RMB 2.44 trillion (US$383 billion) gross merchandise value (GMV) in 2021.[9][10]

History

Pinduoduo is a Chinese ecommerce company that was founded in 2015 by Colin Huang. Initially, it operated as an agriculture online retailer, but later transitioned to a third-party platform model that connects merchants and consumers across various product categories.[11][12]

In 2019, Pinduoduo invested in developing an agriculture-focused logistics system that uses algorithms to optimize transportation routes. This logistics system was the basis for the launch of a next-day grocery shipping service, Duo Duo Grocery, in August 2020. The service was created in response to the changes in consumer behavior during the COVID-19 pandemic.[13][14] Pinduoduo also worked with rural communities to sell unsold produce directly to consumers after traditional wholesale markets closed due to the outbreak.[15]

In September 2022, Pinduoduo's sister company, Temu, was launched in the U.S. by PDD Holdings.[16][17][18]

Controversy

In 2018, Pinduoduo came under scrutiny following a spate of negative press calling the company out for inferior and imitation products.[19] The company responded with an open letter stating that it had, in a single week in August, shut down 1,128 stores, taken down more than 4 million listings, and blocked 450,000 suspected counterfeit goods listings from being published.[20] The company also disclosed that it had removed 500,715 items and closed more than 40 stores as of February 4, 2020, to protect consumers from counterfeit and substandard masks being sold by merchants hoping to profit amid the pandemic.[21]

On June 7, 2018, Legal Evening News reported that Pinduoduo investigated and shut down stores and removed listings that violated its platform policy against pornography and violence, following an earlier report by the newspaper.[22]

On January 20, 2019, Pinduoduo reported the theft by hackers of tens of millions of Yuan in coupons to the police.[23] An online collective of users exploited a loophole in Pinduoduo's system and stole tens of millions of yuan worth of discount vouchers.[24]

On July 5, 2022, a Shanghai court dismissed a local resident's lawsuit accusing Pinduoduo of cheating in a promotional event.[25]

In 2022, Pinduoduo was named on the Office of the United States Trade Representative's list of Notorious Markets for Counterfeiting and Piracy.[26][27]

In 2023, Google removed Pinduoduo's app from the Play Store due to security concerns after finding malware in the app.[28][29] Six cybersecurity teams interviewed by CNN – including Finnish, Russian, US, and Israeli firms – as well as Chinese cybersecurity firm DarkNavy, all labelled Pinduoduo as malware or potential malware.[30]

References
  1. Bera, Ayanti (1 July 2020). "China's Pinduoduo appoints Lei Chen as chief executive officer". Reuters. Archived from the original on 1 July 2020. Retrieved 6 July 2020.
  2. Kharpal, Arjun (22 April 2020). "Everything you need to know about Pinduoduo, the fast-growing rival to Alibaba and JD in China". CNBC. Archived from the original on 3 July 2020. Retrieved 1 July 2020.
  3. "The incredible rise of Pinduoduo, China's newest force in e-commerce". TechCrunch. Archived from the original on 23 July 2020. Retrieved 1 July 2020.
  4. Jingli, Song (15 December 2020). "Pinduoduo unveils payment service Duoduo Pay for its 731 million users". KrASIA. Archived from the original on 25 January 2021. Retrieved 13 January 2021.
  5. Liao, Rita (17 March 2021). "Pinduoduo steals Alibaba's crown with 788M annual active users". TechCrunch. Archived from the original on 17 March 2021. Retrieved 17 March 2021.
  6. Achard, Sepehr (26 August 2022). "Pinduoduo Promotes Use of Technology For Agriculture". iGrow News. Archived from the original on 27 August 2022. Retrieved 27 August 2022.
  7. Liao, Rita. "Why Alibaba rival Pinduoduo is investing in agritech". TechCrunch. Archived from the original on 27 August 2021. Retrieved 27 August 2021.
  8. "PDD Holdings names Jiazhen Zhao co-CEO". Reuters. 2023-04-04. Retrieved 2023-04-05.
  9. "In 2021, Q4 pinduoduo's revenue was 27.23 billion yuan, with a year-on-year increase of 3% From Pinduoduo". Fresh Research reports and Daily Fintech briefings. Archived from the original on 27 August 2022. Retrieved 27 August 2022.
  10. "Pinduoduo Announces First Quarter 2022 Unaudited Financial Results". PinDuoDuo. Archived from the original on 27 August 2022. Retrieved 27 August 2022.
  11. Liao, Rita. "Why Pinduoduo is putting all its profit into agriculture". TechCrunch. Archived from the original on 27 August 2022. Retrieved 27 August 2022.
  12. McGregor, Grady. "The largest Chinese e-commerce company you've never heard of wants to enter the U.S." Fortune. Archived from the original on 26 August 2022. Retrieved 27 August 2022.
  13. Bala, Sumathi (17 November 2020). "China's Pinduoduo expects online grocery sales to double this year". CNBC. Archived from the original on 17 February 2021. Retrieved 13 January 2021.
  14. "Pinduoduo's New Venture into Online Grocery Shopping in Quest to Expand Agriculture Share". Pandaily. 13 November 2020. Archived from the original on 7 February 2021. Retrieved 13 January 2021.
  15. "Melon Farmers Find New Buyers Through Agriculture E-Commerce". Agri Food Tech News. 19 July 2022. Archived from the original on 27 August 2022. Retrieved 27 August 2022.
  16. Fan, Cafe (10 November 2022). "Will battle for US consumer wallets intensify with latest contender Temu?". TechNode. Archived from the original on 29 November 2022. Retrieved 29 November 2022.
  17. Lu, Shen; Huang, Raffaele (2022-09-02). "China's Pinduoduo Quietly Launches U.S. E-Commerce Site Temu". The Wall Street Journal. ISSN 0099-9660. Archived from the original on 2022-09-03. Retrieved 2022-09-04.
  18. Liao, Rita (20 September 2022). "Amazon's latest challenger is China's online dollar store Pinduoduo". TechCrunch. Archived from the original on 22 September 2022. Retrieved 22 September 2022.
  19. Goh, Brenda (1 August 2018). "China to probe e-commerce firm Pinduoduo over reports of fake goods". Reuters. Archived from the original on 6 July 2020. Retrieved 6 July 2020.
  20. Soo, Zen (23 August 2018). "Pinduoduo removes millions of suspected fake listings after stock plunges". South China Morning Post. Archived from the original on 7 July 2020. Retrieved 6 July 2020.
  21. Lee, Emma (6 February 2020). "E-commerce firms cracking down on sellers of fake protective masks". TechNode. Archived from the original on 7 July 2020. Retrieved 6 July 2020.
  22. "Why did Pinduoduo respond? Close the store involved and remove the illegal products from the shelves". Sohu (in Simplified Chinese). 2018-06-07. Archived from the original on 2018-06-12. Retrieved 2018-09-20.
  23. "China's Pinduoduo reports theft of online discount vouchers to police". Reuters. 2019-01-20. Archived from the original on 2019-01-21. Retrieved 2019-01-21.
  24. "Hackers Take Coupons Worth Tens of Millions of Yuan on Pinduoduo". Bloomberg. Archived from the original on 2019-06-17. Retrieved 21 August 2020.
  25. Yuting, Zhu. "Pinduoduo escapes cheating verdict but told to pay compensation". SHINE. Archived from the original on 27 August 2022. Retrieved 27 August 2022.
  26. Singh, Kanishka (2022-02-18). "U.S. adds e-commerce sites operated by Tencent, Alibaba to 'notorious markets' list". Reuters. Archived from the original on 2022-02-19. Retrieved 2022-02-18.
  27. "USTR Releases 2021 Review of Notorious Markets for Counterfeiting and Piracy". United States Trade Representative. Archived from the original on 2022-02-19. Retrieved 2022-02-18.
  28. "Google Halts Download of Chinese App Pinduoduo Over Security Concerns". The Wall Street Journal. March 21, 2023. Archived from the original on 2023-03-21. Retrieved 2023-03-23.
  29. "Google Suspends Chinese E-Commerce App Pinduoduo Over Malware". Krebs on Security. Retrieved 2023-04-05.
  30. Gan, Nectar; Xiong, Yong; Liu, Juliana (2023-04-02). "'I've never seen anything like this:' One of China's most popular apps has the ability to spy on its users, say experts". CNN. Retrieved 2023-04-05.
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