JD.com eyes expansion into food delivery, global markets

Richard Liu, founder of JD.com, announced plans to expand the company’s international presence and enter new sectors such as food delivery and travel.

Liu discussed the challenges JD.com faced over the past five years, labeling this period as the “darkest” in the company’s history.

He noted that JD.com had stagnated while competitors like PDD Holdings advanced.

Liu stressed the need to use JD’s logistics network for growth in areas like meal delivery, a sector the company entered in March.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Richard Liu’s return signals the end of tech crackdown’s leadership retreat

Liu’s reemergence as an active leader follows a pattern seen across Chinese tech during the regulatory storm of 2020-2022, when many founders stepped back from public roles.

During this period, Liu joined other tech founders who retreated from CEO positions, with JD.com’s stock suffering a 25% decline in 2022 amid the broader tech crackdown 1.

The regulatory environment has since evolved toward a more balanced approach, with the State Administration for Market Regulation now emphasizing “maintaining development security while promoting growth” rather than purely punitive measures 2.

This shift aligns with the government’s renewed focus on tech firms as drivers of employment and consumption in the post-COVID economy, creating space for founders like Liu to reassert their strategic vision 2.

Liu’s characterization of the past five years as “lost” corresponds to the timeline of heightened regulatory scrutiny that disrupted JD’s innovation cycle and market positioning.

2️⃣ JD’s food delivery gambit represents both defensive and offensive strategy

JD’s aggressive entry into food delivery isn’t just about market expansion. Analysts frame it as a strategic response to Meituan’s growing dominance in “instant retail” that threatens JD’s core commerce business 3.

Bernstein analysts specifically note that JD’s approach combines defensive positioning to protect its existing business with an offensive push to capture daily consumer engagement through meal delivery 3.

The strategy appears to be working on some level, with Liu claiming 40% of new food delivery users converting to e-commerce customers, showing how the service functions as a customer acquisition channel for JD’s broader ecosystem.