ByteDance merges ecommerce units to rival Alibaba, JD.com

ByteDance is merging Douyin Supermarket with Douyin Hourly Delivery to expand its ecommerce business in China.

The integration aims to boost Douyin’s instant commerce offerings, putting it in direct competition with Alibaba, JD.com, and Meituan.

Douyin Hourly Delivery uses mapping and location technology for rapid deliveries.

Douyin Supermarket, launched in 2023, offers a streamlined ecommerce experience, though only some products have been available for next-day delivery.

The move reflects a broader trend in China’s ecommerce sector, where instant delivery is becoming a key focus amid rising competition.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ China’s instant retail boom creates massive opportunity for new entrants

Douyin’s move comes as China’s instant retail market experiences explosive growth, reaching 780 billion yuan in 2024 with projections to exceed 2 trillion yuan by 20301.

This rapid expansion reflects a fundamental shift in Chinese consumer behavior, where speed and convenience have become paramount purchasing factors.

Modern Chinese consumers increasingly expect same-day delivery and are willing to pay premiums for faster service1, creating fertile ground for platforms that can deliver on these expectations.

The integration of Douyin Supermarket with its hourly delivery service positions ByteDance to capture a share of this fast-growing market segment, especially given the platform’s existing user base of hundreds of millions of daily active users.

2️⃣ Established giants dominate instant delivery, making competition fierce

Douyin faces formidable competition from entrenched players who already command massive daily order volumes in China’s instant delivery space.

Meituan maintains a dominant 70% share of food delivery with 90 million daily orders, while JD.com has rapidly scaled to 25 million daily orders since launching its food delivery service in February2.

Alibaba’s combined instant commerce services, including Ele.me and Taobao Instant Commerce, process 40 million daily orders2, demonstrating the scale required to compete effectively.