JD.com to Research Potential Move Into Food Delivery Sector
Xin Lijun, the CEO of JD Retail, said in an interview that JD.com was studying the possibility of entering the field of food delivery, Bloomberg reported on Friday.
The executive said: “It will depend on what we can do and when we can build a team of talented people as to when we start doing this.”
Meituan and Alibaba have long dominated China’s takeaway market, and they have cultivated a huge group of takeaway drivers by investing large sums of money. Xin did not elaborate on the firm’s takeaway plans in the interview, but he said JD.com‘s logistics subsidiary Dada Kuaisong has an advantage in same-city delivery. In the takeaway sector, last-mile transportation is key.
Chinese media outlet LatePost also reported this news on June 8, and the report was confirmed by Xin Lijun’s remarks this time. LatePost reported that JD.com would pilot the restaurant takeaway business, and that takeaway merchants will be on the JD Daojia App with Dada made responsible for delivery. The business has not yet been officially launched. The first location of the pilot will be selected in Zhengzhou and other cities, and the team has already connected with local restaurant merchants for JD.com takeaway.
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The takeaway industry in China continues to grow rapidly. According to CHNCI, China’s takeaway catering market size grew from 166.3 billion yuan ($28.4 billion) in 2016 to 664.6 billion yuan ($99.4 billion) in 2020. The market size of China’s takeaway catering industry is expected to reach 941.74 billion yuan ($140.48 billion) in 2022.
