JD.com has officially entered the competitive food delivery market, traditionally dominated by Meituan and Ele.me. The recent announcement of JD.com's food delivery services has sparked heated discussions among netizens, many of whom have noticed an "Eat" option within the JD.com App. Over the years, JD.com has been upgrading and optimizing its instant retail business. Starting from 2024, the company has focused on its food delivery segment, integrating and upgrading "JD.com 1-Hour Delivery" and "JD.com Daojia" into "JD.com Miaosong," catering to consumers' demand for "instant gratification" with delivery times as fast as 9 minutes.

The food delivery market, with its enormous development potential, has attracted accelerated layouts from major platforms and internet giants like Douyin and Kuaishou. Some industry insiders believe that JD.com's entry into this market brings new vitality and competition, ultimately contributing to the overall growth of the industry.

Official Layout of Food Delivery Business

Consumer Titanium observed that the "JD.com Eat" entry is located under the "Miaosong" section of the JD.com App. By clicking on the "Eat" channel, consumers can see restaurants located within a radius of hundreds of meters to about 5 kilometers from their current location.

Notably, only a small portion of JD.com's food delivery services are handled by merchant self-delivery, with the majority managed by "Dada Miaosong." JD.com's current instant retail business is fulfilled by Dada Group, and delivery speed is a key selling point of JD.com Miaosong, which has previously claimed to achieve delivery in as little as 9 minutes. Additionally, the "Punctual Guarantee" service offers users peace of mind, as they will receive compensation if the delivery is late.

In terms of pricing, compared to Meituan Eat and Ele.me, consumers can see that after placing an order, JD.com Eat charges a delivery fee of 5 yuan in addition to the meal price and packing fee.

JD.com and Dada Group have a long history of deep cooperation, laying a solid foundation for the food delivery business. In April 2016, JD.com Daojia merged with Dada Group, combining JD.com Daojia's merchant flow resources with Dada Group's logistics and delivery capabilities to enhance delivery efficiency. In March 2021, JD.com subscribed to newly issued ordinary shares of Dada Group worth 800 million US dollars, increasing its shareholding ratio to 51% and becoming a major shareholder. In September 2024, JD.com completed the acquisition of Walmart's shares in Dada Group, increasing its shareholding ratio to 63.2%.

In recent years, the number of riders at Dada Group has continued to grow. According to official data, as of the end of 2023, the number of active riders at Dada Group has exceeded 1.2 million, marking a year-on-year increase of over 20%.

In January of this year, JD.com fully acquired Dada Group at a 42% premium. Some industry insiders believe that Dada Group has significant advantages in the delivery field, with a mature rider network and advanced delivery technology. By acquiring Dada, JD.com can meet the timeliness requirements for delivering fresh produce, pharmaceuticals, and other goods, enhancing the consumer experience.

Expanding the Instant Retail Business Territory

JD.com has previously attempted to enter the food delivery field. In June 2022, Xin Lijun, then CEO of JD.com Retail, stated in an interview that JD.com was considering entering the food delivery business, with plans to launch the service on the JD.com Daojia App and conduct pilot projects in cities like Zhengzhou. However, due to factors such as the pandemic, the food delivery project failed to officially launch.

In 2024, JD.com began to focus on its food delivery business, designating the instant retail business as one of the key development projects for the year. In May 2024, JD.com announced a comprehensive upgrade of its instant retail business, integrating and upgrading "JD.com 1-Hour Delivery" and "JD.com Daojia" to "JD.com Miaosong," and promoting the "Miaosong" entry to the first screen of the JD.com App homepage, emphasizing delivery times as fast as 9 minutes.

In July 2024, JD.com signed the international famous track and field athlete and Olympic champion Liu Xiang as the spokesperson for its Miaosong business, emphasizing the "fast delivery" image in users' minds. In September 2024, JD.com launched the "Coffee & Milk Tea" channel in the "Miaosong" section, providing food delivery services for beverages and attracting consumers with a "9.9 yuan free shipping" promotion.

Some industry insiders pointed out that the official launch of JD.com's food delivery section is a crucial move to expand JD.com's instant retail business territory.

JD.com has been preparing for a long time in the field of instant delivery. In 2015, JD.com launched "JD.com Daojia," focusing on services such as supermarkets, fresh produce, fruits and vegetables, medicine, and health care. Since then, "JD.com Daojia" has continued to grow and develop, relying on Dada Express and numerous retail partners to provide consumers with instant delivery services covering a wide range of goods, achieving a service experience of delivering goods to consumers' homes in about one hour.

Some industry insiders pointed out that the food delivery business usually has high frequency and stickiness, which can bring more traffic and user data to JD.com. These data can be further utilized to optimize JD.com's retail business and enhance the user experience. Additionally, developing the food delivery business helps JD.com build a more comprehensive retail ecosystem by integrating online and offline resources, providing comprehensive retail services ranging from fresh food to daily necessities, achieving seamless connection and interaction between online and offline.

Bringing New Vitality and Competition

The food delivery market targeted by JD.com is in a booming stage. According to the "2024 Annual Report on China's Catering Industry," in 2023, China's catering food delivery market size was approximately 1.2 trillion yuan, accounting for 22.6% of catering revenue. The "Report on the Digital Development of China's Catering Industry" believes that online food delivery services have had a significant impact on the digitization process of the entire catering industry, creating catering consumption demand and promoting the vigorous development of the industry by enriching catering consumption scenarios and increasing consumption hours.

Recognizing the huge business opportunities in the food delivery market, internet platforms such as Douyin and Kuaishou have also begun targeting the food delivery business, hoping to secure a place in the market through their platform advantages. At the end of June 2023, Douyin successfully launched its food delivery business, and after a period of testing, Kuaishou officially entered the food delivery market in March 2024.

Some industry insiders believe that in today's consumer market, consumers' tolerance for delayed gratification has significantly decreased. Faced with such a market environment, platforms must respond quickly and immediately satisfy consumers' needs to explore and increase business opportunities.

Jiang Han, a senior researcher at the RDIAC, pointed out that considering the vast size and growth potential of the food delivery market, JD.com's entry into this market is also a strategy to seek business growth points and expand its market territory. "Considering JD.com's advantages in logistics and distribution, as well as local lifestyle services, and the continuous growth potential of the food delivery market, I believe that JD.com's food delivery business still has certain market prospects in the coming years," said Jiang Han.

Some industry insiders believe that JD.com's brand influence and huge user base provide a solid foundation for its food delivery business. As long as JD.com can effectively guide users and convert e-commerce users into food delivery users, the future traffic potential cannot be underestimated. For the entire food delivery market, JD.com's entry into the food delivery business brings new vitality and competition, ultimately contributing to the overall growth of the industry.

A regional leader of a well-known chain coffee brand stated that they have already joined JD.com Eat, valuing JD.com's brand value and potential user base. They believe that as JD.com Eat continues to develop, it will attract more users to place orders, bringing more sales opportunities for the brand.