(Yicai Global) Dec. 30 -- China is working on a new policy to promote the healthy and orderly development of the on-demand delivery sector, according to a high-ranking official.

Instant delivery, an emerging logistics segment that integrates aspects from different industries, is not fully adapted to the existing policy system and management mechanisms, Zhang Jiangbo, deputy director-general of the trade department of the National Development and Reform Commission, said at a press conference yesterday.

The development of on-demand delivery services, including takeout and intracity express delivery, faces a series of outstanding problems, including incomplete policy frameworks, labor security, lack of platform collaboration, as well as insufficient standards, supporting facilities, and equipment, Zhang added.

China's instant delivery orders are expected to grow 30 percent to exceed 40 billion this year from a year ago while the market size should reach about CNY200 billion (USD28.8 billion), driven by demand for food and beverage takeout, as well as Covid-19-related supplies, according to an industry organization.

The NDRC will focus on promoting the construction of large suburban warehouses to store, process, and package goods, Zhang said. Such warehouses are important in optimizing urban logistics systems to serve consumers while boosting emergency restocking capacity, he added.

Editors: Shi Yi, Emmi Laine, Xiao Yi