Amid Retail Price Wars, JD.com Bets on a New Market — Food Delivery
E-commerce giant JD.com is making a high-stakes move into China’s cutthroat food delivery market, challenging industry leaders Meituan and Ele.me as it seeks new growth beyond retail.
The e-commerce giant has begun recruiting well-established dine-in restaurants to its platform, waiving commissions for those who join before May 1. A Sixth Tone check of JD.com’s app on Friday found its selection still dominated only by major chains such as Haidilao, Costa Coffee, Papa John’s, and Dairy Queen.
Domestic China’s food delivery market is overwhelmingly controlled by two major players, Meituan and the Alibaba-owned Ele.me, which held 65% and 33% of the market in 2024, respectively.
Despite this dominance, the industry is still growing. More than 10 million delivery riders fulfill an average of 80 million orders daily for 545 million users. The sector is valued at 1.2 trillion yuan ($156 billion), with consumers spending nearly 3.3 billion yuan per day on food delivery.
JD.com’s move comes amid intensifying competition from Alibaba’s Taobao, China’s largest e-commerce platform, as well as Pinduoduo and rising players like Douyin, China’s version of TikTok. Facing slowing consumer spending and price wars, JD.com is looking beyond retail for growth by leveraging its vast self-run logistics network.
According to retail e-commerce expert Zhuang Shuai, JD.com’s food delivery push remains in its early stages and lacks a clear competitive edge. He told domestic media that JD.com has yet to differentiate itself on pricing or operations and appears focused on scaling cautiously rather than aggressively expanding its merchant base.
Another JD.com source told domestic outlet Jimu News that delivery fees vary based on factors such as distance, order price, time, and weather. For now, the company is only inviting select restaurants to join, requiring strict audits of business licenses, store photos, and in-person inspections by sales staff.
JD.com’s commission-free offer may help attract early adopters, but its long-term success hinges on more than just pricing, e-commerce analyst Chen Liteng told Time News. To compete with entrenched rivals, JD.com will need to offer merchants logistics support, data services, and a scalable supply chain.
But even with these tools, JD.com faces an uphill battle. Internet analyst Zhang Shule cautioned that China’s food delivery sector remains labor-intensive and fiercely competitive. “Without disruptive innovation, JD.com may carve out a share of the market — but is unlikely to reshape the industry,” Zhang said.
(Header image: VCG)
