On Feb. 11, 2025, JD.com officially announced the launch of a new food delivery service, recruiting “quality dine-in restaurants” to join its platform with a significant incentive: zero commission fees for all merchants who sign up before May 1. JD’s bold entry into the highly competitive food delivery space is a direct challenge to industry leaders such as Meituan.
Why it matters: JD’s entry into the food delivery sector could reshape the competitive dynamics of the market, with the firm’s strong logistics infrastructure and differentiated approach of targeting “quality” merchants. By focusing on “quality dine-in restaurants” rather than competing in the budget segment, JD appears to be aiming to avoid direct price wars with China’s established food delivery giants Meituan and Ele.me, while still offering attractive terms to merchants burdened by high commissions. For consumers, this expanded choice might lead to better service and quality options.
Details: With Meituan and Ele.me already having established deep market penetration and extensive supply chains, JD’s entry into food delivery is an attempt to disrupt the status quo. Although JD is focusing on differentiating itself through its quality merchant strategy, it will need to ensure that its service delivery matches the high expectations set by Meituan and Ele.me’s well-oiled operations.
- JD has specifically limited its merchant recruitment to “high-quality” restaurants, ensuring these establishments meet strict criteria. According to 21st Century Business Herald, JD plans to conduct comprehensive vetting, including photo verification of store locations and on-site visits by sales representatives to ensure the authenticity of its partners.
- By offering zero commission fees for the first year, JD is hoping to entice merchants who are looking to reduce the burden of commissions that typically eat into their margins on platforms like Meituan and Ele.me.
- Compared to JD.com’s offer of zero commission for the entire first year, Meituan’s merchant commission rate currently ranges from 6% to 8%, with delivery service fees incurred when merchants choose Meituan for delivery.
- JD’s food delivery service is an extension of its broader push into instant retail. The company has been progressively expanding its reach in this space, with services such as JD Daojia (JD Home) and JD Seconds aiming to offer instant deliveries in various sectors, including groceries and fast food. This new food delivery service is expected to integrate seamlessly with JD’s existing logistics network, which has been a key advantage for the company in its push for higher operational efficiency.
- JD’s logistics advantage — particularly its ability to leverage the existing JD Logistics infrastructure — could help reduce operational costs and improve delivery efficiency. Yet, as demonstrated by the challenges faced by other e-commerce players such as Douyin, building a scalable delivery network is not an easy task. JD’s ability to recruit a sufficient number of riders and integrate them into its existing logistics framework will be key to its success.
Context: JD’s aggressive foray into food delivery is part of a broader strategy to bolster its position in China’s highly lucrative local services market, an area where Meituan has long reigned supreme. Meituan, with its extensive rider network and mature infrastructure, holds a dominant position in the market, which includes everything from food delivery to ride-hailing services.
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