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Allegro CEO Denies Dispute with InPost Amid Arbitration Claim

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Polish e-commerce giant Allegro rejected suggestions of a business dispute with its partners on Friday, despite ongoing tensions with its key delivery provider InPost (INPST.AS).

“We do not believe that we are involved in any business or other dispute with any entity,” said Allegro CEO Marcin Kusmierz, who took charge in June. His comments came after InPost announced in July that it had filed an arbitration claim, accusing Allegro of breaching a long-term delivery agreement by redirecting customers to its own parcel lockers.

InPost, which derives roughly 30% of its Polish revenue from Allegro, has seen its shares tumble more than one-third this year, though they gained 9% on Friday after a sharp 13% drop earlier in the week on weaker parcel volumes. Allegro shares were up around 2%.

InPost CEO Rafal Brzoska has defended the arbitration move as necessary to protect shareholder interests. Allegro, however, emphasized that it respects existing agreements while continuing to diversify its logistics network by adding new partners and rolling out its own lockers to cut delivery costs.

JPMorgan analysts noted that the interdependence of the two companies makes a negotiated settlement likely, though it may reduce InPost’s margins. The bank estimated that Poland will account for 48% of InPost’s revenue in 2025, but that figure could fall to 35% by 2030 as the company accelerates its international expansion.

JD.com Struggles to Gain Ground in China’s Instant-Delivery Market

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Chinese e-commerce giant JD.com (9618.HK) is ramping up efforts to expand its instant-delivery business through JD Takeaway, launched in February, aiming to diversify revenue beyond its core retail operations. Despite significant investments and improvements in user engagement—quarterly active customer growth and shopping frequency rose over 40%—the company faces a steep challenge breaking into a market dominated by established players.

Daily active users of JD’s delivery service have declined steadily since mid-June, falling more than 13% week-on-week by July 27, according to M Science data, signaling potential market share loss. Analyst Vinci Zhang noted that Meituan (3690.HK) and Alibaba’s (9988.HK) Ele.me service possess strong expertise in food delivery, making JD’s expansion particularly difficult.

JD’s investments in food delivery have also compressed profitability, with the adjusted operating margin dropping to 0.3% in the June quarter from 4% a year ago. By comparison, Meituan recently recorded an all-time high of 120 million daily orders across food and retail, controlling nearly 70% of the delivery market, while Alibaba’s Taobao instant commerce combined with Ele.me hit 80 million daily orders, with 200 million daily active users early in July.

The market is seeing fierce competition, with the three companies collectively pledging nearly 200 billion yuan ($27.87 billion) in subsidies, fueling a price war in instant retail that has drawn regulatory attention. JD.com CEO Sandy Xu emphasized the company’s focus on platform improvements to attract more users, merchants, and delivery riders, even as competitors prepare to report their quarterly results.

Shein’s UK Sales Surge to $2.8 Billion in 2024

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Shein’s British business generated £2.05 billion ($2.77 billion) in sales in 2024, marking a 32.3% increase from 2023, according to a recent filing. The UK represents Shein’s third-largest market after the United States and Germany as the fast-fashion e-commerce giant prepares for an initial public offering in Hong Kong.

Shein Distribution UK Ltd reported a pretax profit of £38.25 million in 2024, up 56.6% from £24.4 million the previous year. The filing highlighted milestones including a pop-up shop in Liverpool, a Christmas bus tour across 12 UK cities, and the opening of two new offices in Kings Cross and Manchester.

The retailer is known for low prices, constant promotions, and rewards programs that encourage repeat purchases. Shein has captured market share from competitors such as ASOS (ASOS.L) and H&M (HMb.ST), especially as rising inflation has pushed consumers toward bargain hunting. Its UK site offers items ranging from £7.99 ($10.84) dresses and £15 ($20.36) jeans to toys, craft supplies, and storage products.

Shein has benefited from customs duty exemptions on low-value e-commerce shipments, allowing goods to be shipped directly from Chinese factories largely tariff-free. However, these exemptions are being phased out, raising costs and prices, particularly in the U.S. The Trump administration eliminated the “de minimis” exemption for parcels under $800, and the EU plans to remove its duty waiver for parcels under €150. The UK is also reviewing its policy on low-value imports amid complaints that it favors online retailers like Shein and Temu.