JD.com enters China’s food delivery market

CHINA – JD.com, China’s leading e-commerce platform, has announced its expansion into the country’s food delivery market.

JD.com has launched recruitment for restaurants on its e-commerce platform as part of its strategy to enter the food delivery market.

In an effort to attract merchants, the company announced on its Weixin account that restaurants joining JD Takeaway before 1 May 2025 will receive commission-free services for a full year, according to Reuters.

This move positions JD.com against established players Meituan and Alibaba’s Eleme, which currently dominate China’s food delivery sector.

The expansion aligns with the country’s thriving e-commerce landscape, where the online food delivery market is expected to generate US$500.50 billion in revenue in 2025 and grow at an annual rate of 7.77% until 2032.

China remains the world’s largest online food delivery market, driven by strong economic growth, evolving consumer lifestyles, and increasing internet and smartphone penetration.

A key factor behind this expansion is the country’s large young population, which forms a significant portion of the consumer base.

Urban residents, particularly those with busy lifestyles, tend to rely more on food delivery services.

JD Takeaway aims to capture market share by targeting restaurants expanding into smaller cities, which present significant growth opportunities compared to major urban centers like Beijing and Shanghai.

Market players are also diversifying their offerings by catering to non-peak hours, such as afternoon tea and late-night snacks.

Through its merchant support initiatives, JD Takeaway seeks to foster the industry’s long-term sustainable growth.

JD.com’s foray into food delivery comes amid intense competition within China’s e-commerce sector. The company faces rivalry from Alibaba Group, PDD Holdings, and emerging platforms like Douyin.

To maintain its market position in the face of economic slowdown and declining consumer spending, JD.com has introduced discount campaigns. However, these price wars have negatively impacted the company’s share price.

A notable advantage for JD.com is its self-operated logistics network, which has been developed over the years.

This infrastructure enables the company to offer same-day or next-day deliveries across most regions in China, enhancing its service capabilities.

In June 2024, Domino’s Pizza master franchise DPC Dash opened its 900th store in Chengdu, China. The expansion aligns with the company’s “Go Deeper, Go Broader” strategy.

The opening was met with enthusiasm from customers, who formed long queues to experience the latest location’s offerings.

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