Chinese ecommerce giant JD.com will be venturing into food delivery, LatePost reported.
The service will initially be rolled out in cities like Zhengzhou. The platform will see merchants using the JD Daojia grocery delivery platform, while Dada Group will be responsible for logistics.
JD Tongcheng, a subsidiary of JD.com, has also set up a food and beverage team for the new venture, which currently has 10 employees.
See also: Can JD.com make a splash in SEA?
The new food delivery service comes amid JD’s efforts to mitigate its losses. After posting a net loss of US$800 million in 2021, the firm announced its 2022 strategy to help the company perform better. Among the measures is shrinking loss-making businesses – one of which is community group buying subsidiary Jingxi Pinpin. This business will only be operating in Zhengzhou and Beijing, downsizing from its prior presence in over 20 provinces.
Editing by Kul Bhushan and Jaclyn Tiu
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