BEIJING (Reuters) – China’s e-commerce giant JD.com is venturing into the country’s highly competitive food delivery business, announcing on Tuesday that it will register catering merchants on its courier system. The company posted on its official Weixin account, inviting merchants: “Join us now, zero commissions all year round!” Catering merchants who register with JD Takeaway […]
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China’s JD.com moves into food delivery, starts recruiting restaurants
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BEIJING (Reuters) – China’s e-commerce giant JD.com is venturing into the country’s highly competitive food delivery business, announcing on Tuesday that it will register catering merchants on its courier system.
The company posted on its official Weixin account, inviting merchants: “Join us now, zero commissions all year round!”
Catering merchants who register with JD Takeaway before May 1 will enjoy commission-free services for the entire year, it said.
JD.com stated in its announcement that JD Takeaway will provide comprehensive support for merchants, aiming to promote the healthy and sustainable development of the food delivery industry.
China’s food delivery market is dominated by two players, market leader Meituan and Alibaba’s Eleme.
The move comes as JD.com faces significant competition in China’s rapidly evolving e-commerce industry. The market is crowded with numerous companies, including established giants Alibaba Group and PDD Holdings, as well as emerging platforms such as Douyin.
Amid an economic slowdown and weakening consumer spending power, JD.com has launched discount campaigns to counter the competition. However, these price wars have resulted in a decline in the company’s share price.
The company has its own extensive, self-run logistics network that it has built over the years, which allows it to offer same-day or next-day delivery to most of the country’s regions.
(Reporting by Sophie Yu, Brenda Goh, Editing by Louise Heavens)