JD.com Expands into Food Delivery Sector, Welcomes Restaurants on Board
China's e-commerce giant, JD.com, is making a bold move into the fiercely competitive food delivery industry in the country. The company recently announced its plans to onboard catering merchants onto its courier system, marking its entry into this challenging market segment. Through its official Weixin account, JD.com extended an invitation to merchants, offering them the opportunity to join with zero commissions throughout the year.
Merchants who sign up with JD Takeaway before May 1 will benefit from commission-free services for the entire year, as highlighted in the company's announcement. JD.com aims to provide comprehensive support to these catering merchants, with a focus on fostering the healthy and sustainable growth of the food delivery sector.
In China, the food delivery market is currently dominated by two major players, Meituan and Alibaba's Eleme. JD.com's decision to step into this arena comes amidst intense competition within the rapidly evolving e-commerce landscape in China. The market is saturated with various players, including established giants like Alibaba Group and PDD Holdings, alongside emerging platforms such as Douyin.
Facing challenges posed by an economic slowdown and reduced consumer spending power, JD.com has initiated discount campaigns to stay competitive. However, these price wars have impacted the company's share price negatively. Despite this, JD.com leverages its well-established, self-operated logistics network developed over the years, enabling it to provide efficient same-day or next-day delivery services across most regions in the country.
JD.com enters China's competitive food delivery market
Invites catering merchants to join with zero commissions
Aims to support healthy growth of the food delivery industry
Source: REUTERS