Today (Tuesday, 11 Feb 2025), JD.com – one of China’s top ecommerce platforms – announced on its WeChat account that it’s inviting quality “brick-and-mortar” restaurants to join its food delivery platform. Sign up by 1 May, and you won’t pay any commission for the full year!
Meanwhile, the Chinese food delivery market has settled into a duopoly: Meituan and Alibaba’s Ele.me. Analysts say Meituan now holds about 64–67% of the market, delivering over 50 million orders each day.
Meituan has not only dominated, but also skillfully fended off challenges from Douyin (China’s TikTok) in the local services and F&B space.
On demand delivery of coffee & bubble tea was already available on JD last year
So, why is JD, which has dabbled in food delivery before, jumping back into this high-investment, ultra-competitive arena now? Here are a few thoughts:
- Premium Positioning Under Pressure: JD has always been seen as the premium player, shipping authentic goods with its own logistics. However, with a tougher economic climate, its high-end reputation is being challenged.
- Battling the Budget Busters: While JD has held its own against low-cost rivals like Pinduoduo, its past attempts to enter that space didn’t quite hit the mark.
- Speed vs. Same-Day Delivery: Today’s Chinese consumers love speed. Meituan’s 30-minute delivery promise is a game changer compared to JD’s traditional same-day model – while customers who do not mind waiting to save a buck go to Pinduoduo and Taobao.
- Quick Commerce Wins: Meituan’s quick commerce service, Shangou, connects millions of merchants and now clocks over 10 million orders per day (in Q3 2024). With food delivery now a daily must-have for many young urbanites, Meituan’s high-frequency, low-margin model is hard to beat. (watch this episode of MW’s Impulso podcast to find out more)
- A Defensive Play: JD’s latest move is clearly defensive. By inviting F&B merchants and offering to fully acquire on demand company Dada (which JD already owned a majority), JD aims to safeguard its market share against Meituan’s rapid expansion.
- The Big Question: Can JD’s strategy work? The real battle is on quick commerce, where JD needs to defend its ‘fast’ positioning.
In short, JD is making a strategic, high-stakes play to stand up to Meituan’s dominance. It’s a bold step in a market where fast – and affordable – food delivery isn’t just a luxury, but a daily necessity.
Ultimately, in China, there is no safe moat that big techs can count on. They have to compete almost endlessly to expand, or defend, boundaries.
