Across cities, the sight of delivery riders, adorned in their vibrant blue and yellow uniforms, has become ubiquitousThese riders, often referred to as the lifeline of busy urban dwellers, enable countless office workers and students to enjoy a variety of delicacies at the touch of a buttonWith the increasing demand for fast and convenient meal options, food delivery services have woven themselves into the fabric of daily life.However, a significant shift is on the horizon in the delivery landscape, as a new competitor is set to storm the market—what is this all about?
For years, Meituan and Ele.me have been vying for supremacy in the food delivery industry, leveraging groundbreaking innovations and optimizing their services to capture a larger market shareThis relentless competition was merely a setup for the next big development in the industry.On February 11, 2025, JD.com, a giant in the e-commerce realm, officially announced its foray into the food delivery sector, launching an exciting new service known as “JD Speedy Delivery.”
This move undoubtedly heralds a potential storm in the delivery market. With JD’s entrance, the rivalry is bound to intensify, pushing platforms like Meituan and Ele.me to rethink their strategies and offer more lucrative promotions in a bid to retain their customer base.
I remember back in 2016 when JD Supermarket made monumental claims of dominating the Chinese retail sector within three years
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They aimed to capture top rankings in revenue, market share, and consumer satisfaction, setting their sights squarely on rival Tmall Supermarket.Liu Qiangdong, JD's founder, boldly proclaimed that they would decisively end the retail war in three years and would not let Alibaba emerge victorious during the 2018 shopping festival.
Fast forward to present day, JD.com has continuously outperformed Alibaba in the “2024 China Top 500 Private Enterprises” ranking for three consecutive years, illustrating a remarkable lead in revenue and setting the stage for expansion into new territories.
With JD's recent entry into the food delivery industry, it poses a formidable challenge to the existing players like Meituan and Ele.me. JD has cultivated an efficient logistics delivery system over the years, and their promise of “delivery in as fast as 9 minutes” directly caters to customers' increasing expectations for timely delivery.
Additionally, JD has adeptly designed its delivery model to appeal to riders, offering a combination of “high payment plus low intensity,” which undoubtedly attracts countless delivery personnel. This model promises a substantial increase in income for riders while allowing for a lighter workload, ultimately enhancing their job satisfaction.
Moreover, JD’s zero-commission policy presents significant advantages to restaurant owners. For instance, if a food order costs 100 yuan, businesses on other platforms face a 20% commission, translating to a 20 yuan payment to the platform
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In contrast, JD’s no-commission strategy directly converts that 20 yuan into profit for the restaurant.
Furthermore, JD boasts a vast user base of 380 million active buyers, providing a rich reservoir of potential customers ready to be tapped into for its food delivery expansion.If handled effectively, converting e-commerce users into food delivery customers could inject tremendous momentum into the business, resulting in substantial traffic growth and forcing rivals to stay on high alert.
As we analyze the food delivery landscape closely, we can observe that competition between Meituan and Ele.me has already reached a stalemate.In recent years, Ele.me has faced increasing pressure from Meituan, causing its market share to dwindle to about 35%. Meanwhile, Meituan, leveraging its robust financial capabilities and superior market integration skills, has gradually solidified its dominance in the food delivery market.
For the average consumer, JD's strong entry into the market is undoubtedly a blessing. JD's commitment to a year-round no-commission policy will significantly lower operating costs for businessesThis relief may enable restaurants to pass on savings to customers, while platforms like Meituan and Ele.me will have to devise creative promotional offers to maintain their market share, setting the stage for an anticipated "benefit bonanza" that promises more affordable delivery options for everyone.
It is also worth noting that from a societal employment perspective, JD's venture into food delivery will create more job opportunities for delivery riders.Moreover, JD is likely to enhance the standards of rider compensation, addressing salary, benefits, and overall working conditions.
As an observer of this unfolding narrative, one cannot help but marvel at how JD's entry has revitalized the entire food delivery industry.As we move towards an era where delivery options abound, there lies a wealth of opportunities for society and investors alike.
The relentless tide of technological advancement continues to reshape various industries, including food delivery.Modern innovations such as intelligent scheduling systems and the integration of drones for delivery not only significantly boost efficiency but also cleverly reduce operational costs.
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