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JD.com, an e-commerce platform in China, has announced its entry to the country’s food delivery sector.
It has begun recruitment of restaurants.
In a strategic move to attract merchants, JD.com has announced on its Weixin account that those who join the new service, called JD Takeaway, before 1 May 2025 will benefit from commission-free services for the complete year, as reported by Reuters.
JD.com’s entry to the food delivery market is set against the backdrop of a duopoly, with market leader Meituan and Alibaba’s Eleme currently dominating the space.
By providing support for merchants, JD Takeaway aims to foster the sustainable and healthy growth of the industry.
The decision to venture into food delivery comes as JD.com contends with competition within the country’s dynamic e-commerce landscape.
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By GlobalDataFacing rivals such as Alibaba Group and PDD Holdings, and rising platforms such as Douyin, JD.com has initiated discount campaigns to maintain its market position amid an economic slowdown and reduced spending power by consumers.
These price wars, however, have led to a downturn in the share price of the company.
A key advantage for JD.com is its own self-operated logistics network, developed over the years.
This infrastructure enables the company to offer same-day or next-day deliveries across most regions of the country.
In June 2024, Domino’s Pizza master franchise, DPC Dash, opened its 900th store which is located in Chengdu, China. The opening aligned with DPC Dash’s “Go Deeper, Go Broader” strategy.
The company described the opening as being met with “enthusiasm from customers, who formed long queues outside the newest location, eager to experience its offerings.”