JD.com reported that its food delivery service surpassed 20 million daily orders on May 14, 2025. This achievement follows the official launch of the service one month prior.

The company is expanding its platform by partnering with restaurant chains, convenience stores, and pharmacies. It noted significant growth in order volume, especially in lower-tier cities.

JD.com credits its logistics and retail network for this growth. The company plans to invest in delivery infrastructure to support further expansion. This strategy positions JD.com to compete more effectively with established food delivery services such as Meituan and Ele.me.

🔗 Source: Securities Times

🧠 Food for thought

1️⃣ Logistics infrastructure as the new competitive battleground

JD’s rapid achievement of 20 million daily orders demonstrates how e-commerce companies can leverage established logistics networks to enter adjacent markets.

The company’s long-term investment in delivery infrastructure gives it a strategic advantage, particularly in lower-tier cities where competitors have less presence 1.

While JD reports having 1.2 million active delivery riders, this still lags behind market leader Meituan’s 7.45 million riders, illustrating the scale gap JD must overcome 1.

This logistics-first approach contrasts with Alibaba’s Ele.me, which like Meituan operates primarily as a marketplace connecting restaurants and delivery personnel rather than managing the full delivery stack 2.

JD’s strategy mirrors its e-commerce approach where it built China’s largest in-house logistics network to ensure reliable delivery, a capability now being repurposed for food delivery to create competitive differentiation 2.

2️⃣ Zero-commission strategy opens new front in China’s delivery wars

JD’s offer of zero commission for restaurants in its first year represents an aggressive market entry approach that directly challenges Meituan’s business model 3.

This pricing strategy targets Meituan’s dominant 64-67% market share and 50+ million daily orders by appealing to cost-conscious restaurant owners seeking alternatives to standard commission rates 3.

JD’s ability to fund this strategy stems from its strong financial performance, with recent quarterly results showing a 52.7% year-on-year increase in net income to RMB 10.9 billion (USD 1.5 billion) 1.

The company describes its approach as “better and cheaper,” suggesting it aims to combine service quality with competitive pricing rather than competing solely on subsidies 1.

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