Hey there, folks! Your favorite American in China back again, diving deep into the fascinating world of Chinese social life. This time, we’re talking about something that’s as essential to modern life here as it is back home – food delivery! But in China, the game is always bigger, bolder, and brimming with intense competition.
Recently, a major player in the Chinese e-commerce scene, JD.com (京东), announced its official foray into the already crowded food delivery market. Now, for those of you who haven’t been keeping up with the breakneck pace of digital developments in China, JD.com is a titan. Think of it as a blend of Amazon and UPS, with a hefty dose of Chinese characteristics. They’re HUGE in online retail, especially known for their fast and reliable logistics.
So, when JD.com declared it was “going in” on food delivery, it wasn’t just a minor tremor – it felt more like a seismic shift in the already volatile landscape dominated by giants like Meituan (美团) and Ele.me (饿了么). And the opening shot in this new battle? A bold, attention-grabbing move: zero commission for merchants for a whole year!
Yep, you heard that right. “Instant Entry, Zero Commission for the Entire Year,” screamed the headline from JD.com’s official news outlet, “JD Blackboard” (京东黑板报). This announcement, dropped on February 11th, 2025, declared the official launch of “JD.com Food Delivery” (京东外卖) and the start of recruiting “Quality Dine-in Restaurants” (品质堂食餐饮商家). The hook? Restaurants that signed up before May 1st, 2025, would enjoy a full year of commission-free operation. This is JD.com’s official, public declaration of war, marking their first formal foray into the food delivery business, as HuXiu.com reported.
The immediate ripple effect was palpable. The very next day, Meituan’s stock price in Hong Kong took a noticeable dip, dropping over 6% at one point. Why? Because when a behemoth like JD.com, with its vast resources and logistical muscle, enters your turf, you know things are about to get interesting, and potentially, much tougher.
For American readers, it’s crucial to understand just how monumental this move is. China’s online food delivery market is colossal, serving over half a billion users – that’s roughly half of China’s entire internet population! We’re talking about a market worth hundreds of billions of dollars, a daily necessity for millions, and a battleground where fortunes are made and lost.
Over the past decade, we’ve seen a parade of heavyweights – Baidu (百度), Didi (滴滴), Alibaba (阿里), SF Express (顺丰), and even Douyin (抖音, TikTok’s Chinese sibling) – all trying to grab a slice of this lucrative pie. Yet, none have managed to seriously challenge the undisputed king of the hill, Meituan. Meituan has built an empire on food delivery, expanding into everything from hotel bookings to bike-sharing, becoming a quintessential “super-app” in the Chinese digital ecosystem.
So, is JD.com’s entry just another ambitious but ultimately futile attempt to topple the king? Or is there something different about this new contender, something that might actually “stir up the pot,” as the Chinese say (搅局, jiǎojú)?
To understand JD.com’s strategy, we need to look beyond just the surface of food delivery. This isn’t just about getting your Kung Pao Chicken to your door faster. It’s about a much larger game: instant retail.
JD.com’s ambitions in food delivery aren’t exactly a bolt from the blue. Whispers and rumors have been circulating for years. Back in 2022, even JD.com’s then-CEO of Retail, Xin Lijun (辛利军), hinted at the possibility, stating they were “considering and researching launching on-demand food delivery services.” He candidly admitted that the timing depended on “our capabilities and when we can build a talent team.” According to reports, while the intention was there, JD.com’s primary focus in 2023 and 2024 seemed to be elsewhere, largely consumed by its internal “low-price revolution,” a strategic shift to compete more aggressively on price, especially against rivals like Pinduoduo (拼多多). Simultaneously, their instant retail services were undergoing a series of rebranding and integrations. “JD Daojia” (京东到家), their initial foray into on-demand delivery, morphed into “JD Xiaoshi Da” (京东小时达, JD Hourly Delivery), and then, in May 2024, became “JD Miaosong” (京东秒送, JD Seconds Delivery).
It was amidst this strategic reshuffling that food delivery started to creep back into JD.com’s operational blueprint. Even before the official announcement, signs were emerging. In late 2024, JD.com quietly launched a “Coffee & Tea” section within its “Seconds Delivery” channel. While ostensibly focused on beverages, this section also started featuring fast food brands like Luckin Coffee (瑞幸咖啡), Tims China, and Burger King. JD.com even ran promotions, offering Luckin Coffee delivery for just 9.9 RMB with free delivery – a clear precursor to their larger ambitions.
Then, on February 8th, just days before the official announcement, a dedicated “Food Delivery” section quietly appeared at the top of the “Seconds Delivery” channel in the JD.com app. This section already featured a selection of well-known, higher-quality chain restaurants like Zhou Hei Ya (周黑鸭), Zhangliang Malatang (张亮麻辣烫), and Pizza Hut. Delivery options included both “Dada Seconds Delivery” (达达秒送) and “Merchant Self-Delivery” (商家自送).
Crucially, JD.com’s official announcement on February 11th explicitly stated that their merchant recruitment was limited to “Quality Dine-in Restaurants,” emphasizing their commitment to “food safety and quality takeout,” catering to consumers who prioritize quality over just speed and price.
This focus on “quality” is a deliberate strategy, industry insiders believe. It’s a way for JD.com to differentiate itself from the existing giants, Meituan and Ele.me, and to appeal to a segment of consumers who are willing to pay a bit more for better quality and food safety. These are often higher-spending customers, a demographic JD.com is keen to attract.
But how does JD.com plan to ensure this “quality”? According to JD.com sources, their merchant vetting process involves multiple layers: business license verification, store photo review, and even in-person visits and inspections by sales staff. This is designed to prevent “ghost kitchens” or restaurants faking dine-in operations, ensuring genuine, reputable establishments are on their platform.
Of course, for restaurants considering joining JD.com’s new venture, the “zero commission” policy is the real head-turner. With established platforms like Meituan typically charging merchants a commission rate of 6% to 8%, JD.com’s offer is incredibly attractive, especially for businesses operating on thin margins. Industry experts see this as a classic move for a new platform trying to build scale quickly. It’s a powerful incentive for merchants to try out JD.com, though the big question remains: what happens after the first year?
However, to truly understand why JD.com is diving into food delivery, we need to zoom out and look at the bigger picture: instant retail.
In essence, food delivery is instant retail in its purest and most fundamental form. It’s high-frequency, high-demand, and capable of generating massive scale – just look at Meituan, which built its empire on this very foundation. And now, even Meituan is doubling down on instant retail, expanding beyond food to deliver almost anything, anywhere, within minutes.
JD.com’s own history in instant retail is surprisingly deep and long-standing. Way back in April 2015, JD.com launched “JD Daojia,” aiming to provide consumers with 2-hour delivery for groceries and household goods. A year later, in a strategic masterstroke, JD.com merged JD Daojia with Dada (达达), then described as “China’s largest crowdsourced logistics platform.” This merger made JD.com the largest single shareholder of Dada, setting the stage for their future dominance in instant retail logistics. As another report indicates, over the years, JD.com steadily increased its control over Dada. In March 2021, they invested a whopping $800 million to increase their stake in Dada to 51%. By 2022, they held a controlling 52% share. Dada, strategically, became the backbone of JD.com’s instant retail and delivery operations.
In October 2021, JD.com and Dada jointly launched “Nearby” (附近) channels and the instant retail brand “Xiaoshi Gou” (小时购, Hourly Buy). During the 2022 “Double 11” shopping festival (China’s equivalent of Black Friday), over 200,000 brick-and-mortar stores participated in JD Daojia and Xiaoshi Gou, offering consumers delivery within minutes. By the first quarter of 2023, Xiaoshi Gou saw a staggering 60% year-on-year growth in GMV (Gross Merchandise Volume).
In the second quarter of 2023, JD.com unified its instant retail services under the “Xiaoshi Da” brand. This rebranding proved successful, with Xiaoshi Da seeing a 50% year-on-year increase in monthly active users and a 200% GMV growth in the fourth quarter of 2023.
Instant retail became a “must-win battle” for JD.com Retail in 2024. In May 2024, Dada Group announced its full integration into the JD.com ecosystem, rebranding JD Xiaoshi Da and JD Daojia into the unified “JD Miaosong” brand, promising deliveries in as fast as 9 minutes.
Adding another layer of intrigue, in August 2024, Dada Group appointed Guo Qing (郭庆) as its new Chairman of the Board. Guo Qing is a former core member of Meituan’s highest decision-making body, the “S-team.” He had joined JD.com as an advisor months prior. This appointment signaled a clear intent: JD.com had brought in a Meituan veteran to spearhead their instant retail strategy.
Further cementing their commitment, in January 2025, JD.com announced a proposal to privatize Dada Group, offering to acquire all outstanding shares at a 42% premium. This move, if completed, would bring Dada fully under JD.com’s umbrella, making it an entirely owned subsidiary.
So, what’s JD.com’s secret weapon in this food delivery and instant retail battle? It’s their massive network of nearly 1.3 million active riders.
JD.com’s “Seconds Delivery” service has already demonstrated that these riders can achieve incredibly fast delivery times, “as fast as 9 minutes.” If they can deliver electronics and groceries that quickly, why not hot meals?
For JD.com, food delivery is the logical next step to leverage its vast rider network, enhance the value of its instant retail services, and integrate more deeply into consumers’ daily lives. By offering food delivery, JD.com aims to make instant retail a truly everyday service, expanding its reach beyond just electronics and groceries.
But why is JD.com so aggressively pushing into instant retail now? Several factors are at play.
Firstly, JD.com is facing growth pressures. In the third quarter of 2024, their revenue growth was 5.1%, lagging behind the overall online retail market growth of 8.6%. Instant retail, however, remains a bright spot, with a growth rate exceeding 25% in the first eight months of 2024. For JD.com, instant retail, and by extension, food delivery, represents a vital new growth engine.
Secondly, competitive pressures are mounting. Meituan, for example, is aggressively expanding its instant retail footprint, aiming to establish 100,000 “flash warehouses” (闪电仓, shǎndiàn cāng) by 2027. Their product categories are also expanding, encroaching on JD.com’s traditional strongholds like electronics and home appliances. JD.com’s move into food delivery and instant retail is, in part, a defensive strategy to counter Meituan’s expansion into their territory. It’s a preemptive strike, a way to protect their turf while simultaneously seeking new avenues for growth. Analysts suggest that JD.com’s “zero commission” strategy can be seen as a “sneak attack” in this competitive landscape.
Furthermore, by fully integrating Dada and expanding its rider network, JD.com is also addressing the operational challenges of managing a large logistics workforce. Food delivery, with its high order frequency, can help optimize rider utilization and improve the overall efficiency of Dada’s operations.
In essence, JD.com’s entry into food delivery is not just opportunistic; it’s strategic and, some might argue, essential. Another report emphasizes the necessity of food delivery for JD.com’s instant retail ecosystem, viewing it as a crucial component. It’s a move driven by growth imperatives, competitive pressures, and the need to fully leverage its existing assets, particularly its logistics network and rider workforce.
However, the path ahead is far from easy. The food delivery market is a mature and fiercely competitive arena. Meituan and Ele.me are deeply entrenched, with established user habits, vast merchant networks, and sophisticated operational infrastructure. Breaking their duopoly will be a Herculean task.
Past attempts by other tech giants like Baidu, Didi, and even the mighty Douyin, to crack the food delivery market have largely faltered. They faced challenges in building out logistics, acquiring merchants, and changing ingrained user behaviors. As one industry observer aptly put it, “Entering is easy, disrupting is hard” (入局易，破局难, rùjú yì, pòjú nán).
For JD.com to succeed, it needs more than just a “zero commission” policy and a quality focus. It needs to execute flawlessly across a range of fronts: merchant selection and onboarding, operational efficiency, delivery speed and reliability, and effective marketing to change user perceptions and habits. Most importantly, JD.com needs strategic patience and perseverance. Breaking into a market dominated by entrenched giants takes time, sustained investment, and unwavering commitment.
The impact of JD.com’s entry on the food delivery market is likely to be significant. Increased competition is almost guaranteed. Will it trigger a new round of price wars and subsidy battles? Possibly. JD.com’s “zero commission” move has already put pressure on Meituan and Ele.me, forcing them to react and potentially adjust their strategies. As Lienline Insight reports, this “zero commission” strategy can be seen as JD.com acting as a “spoiler” in the market, stirring up new changes.
For consumers, more competition is generally good news. It could mean more choices, potentially better quality, and perhaps even lower prices or more generous subsidies in the short term. For merchants, it means more platforms to choose from, potentially lower commission rates, and greater negotiating power.
The broader implications extend beyond just food delivery. JD.com’s aggressive push into instant retail signals a major shift in the Chinese e-commerce landscape. The battle for local life services is heating up, and it’s far from over. Whether it’s Alibaba, Meituan, Douyin, or now JD.com, the experimentation and competition around local life services are just beginning. The market is waiting for the next major player, and JD.com might not be the last to enter. In the end, the winner will be the one who can attract and retain the most merchants and users, offering the best combination of quality, convenience, and value.
And as for the future of food delivery itself? Perhaps JD.com’s focus on “quality” will nudge the market towards a new phase, one where “eating well” starts to matter as much as “eating fast and cheap.” However, some voices question if takeout can truly deliver “good food,” especially considering the unique nature of Chinese cuisine. Maybe, just maybe, the era of endless price wars and cutthroat competition will give way to a more sustainable and consumer-centric model, driven by quality, service, and a genuine desire to “help people eat better,” as Meituan’s mission statement proclaims. Only time will tell. But one thing is certain: the food delivery game in China just got a whole lot more interesting. According to analysis from BoHu Finance, JD.com’s entry into the potentially unprofitable food delivery market is driven by the need to “seek new growth” and expand into the burgeoning instant retail sector. Furthermore, an article by Zimu Bang on HuXiu.com argues that the key to understanding the JD.com and Meituan food delivery battle lies in “manpower,” highlighting the importance of logistics and labor resources in this competitive landscape.
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