On February 11, 2025, JD.com, one of China’s largest e-commerce platforms, announced its strategic entry into the food delivery market. Through JD Takeaway, the company is enticing catering merchants with an attractive offer—zero commission fees for the first year, provided they sign up by May 1. JD’s latest initiative directly challenges the dominance of food delivery giants Meituan and Ele.me. These two platforms currently hold over 99% of China’s food delivery market share. JD.com’s foray into this space is a response to increasing competition and its desire to boost growth amid an economic slowdown. Leveraging its extensive logistics network, JD aims to carve a niche for itself in the competitive food delivery market. With the launch of JD Takeaway, JD.com is betting on the power of its strong logistics infrastructure to deliver faster services and build a competitive edge.
JD.com: The Powerhouse Behind JD Takeaway
Founded in 1998 by Richard Liu, JD.com is one of China’s largest e-commerce companies, boasting a reputation for offering a wide range of products, including electronics, clothing, and groceries. As a direct competitor to Alibaba’s Taobao and Tmall, JD.com focuses heavily on logistics and delivery efficiency, leveraging its vast self-run logistics network. This infrastructure is one of JD’s strongest assets, ensuring fast and reliable deliveries. JD’s dedication to customer satisfaction is reflected in its same-day and next-day delivery options. The company raised funding through venture capital and IPOs, positioning itself as a major player in China’s e-commerce sector. JD’s foray into food delivery, with JD Takeaway, marks a significant shift as it adapts to the changing market dynamics, particularly as consumer demand for on-demand services rises. By introducing JD Takeaway, JD aims to bring its reputation for fast, reliable delivery into the food delivery market.
JD Takeaway: A New Player in China’s Food Delivery Market
JD Takeaway, JD.com’s food delivery service, launches with an enticing offer: restaurant merchants who sign up by May 1 will pay no commission for a year. This move targets restaurant owners frustrated with the high commission fees charged by competitors like Meituan and Ele.me. The announcement signals JD’s serious commitment to challenging the current market duopoly. At the core of JD Takeaway’s appeal is JD.com’s robust logistics network, which can deliver food quickly, drawing on the company’s experience in same-city delivery. JD Takeaway also promises comprehensive support for restaurants, further making the offer attractive for merchants seeking to reduce operating costs. The initiative is a response to the growing demand for faster food delivery services across urban China.
The Competitive Landscape: Meituan and Ele.me’s Dominance
In the highly competitive food delivery market in China, Meituan and Ele.me have long been the dominant players, commanding over 99% of the market share. Meituan, in particular, holds a significant portion of the market with around 64-67% of the food delivery sector. The dominance of these two platforms has created a tough environment for any new entrants, and JD.com is well aware of the challenges it faces. However, JD’s logistics capabilities provide an edge that may help it to differentiate itself from its competitors. Meituan and Ele.me charge high commission fees, often around 25%, which JD.com has targeted with its commission-free offer. This price advantage could help JD Takeaway capture market share from merchants looking for more cost-effective options. JD’s move comes at a time when food delivery is more important than ever, especially for younger consumers accustomed to the convenience of fast and affordable delivery.
JD Takeaway: Challenges and Opportunities
Although JD Takeaway is still in its early stages, the service already faces several challenges. The platform’s delivery times are currently longer than those of Meituan and Ele.me, which are both known for their quick delivery services. For instance, while Meituan and Ele.me promise delivery within 25 minutes, JD Takeaway’s delivery times can stretch to 49 minutes. This delay could be a hurdle for customers who prioritize speed. Additionally, JD Takeaway has fewer restaurant options available, focusing mainly on fast-food eateries. However, these early limitations provide JD with the opportunity to refine its service offering and build a larger network of restaurant partners. As JD Takeaway expands and attracts more merchants, the platform could improve its delivery times and diversify its food offerings. Despite these early challenges, JD’s reputation for quality and reliability, paired with its strategic investments in logistics, provides a strong foundation for future success.
JD.com’s Strategic Goals in the Food Delivery Market
JD.com’s move into the food delivery market is a calculated response to both internal and external pressures. Externally, JD faces increasing competition from both established players like Meituan and Ele.me and emerging rivals such as Douyin (China’s version of TikTok). Internally, JD’s premium positioning is under pressure due to a challenging economic environment that is reducing consumer spending power. JD’s food delivery initiative, JD Takeaway, is designed not only to capture market share but also to reinforce the company’s reputation for fast, reliable service. By offering zero commission fees, JD is incentivizing restaurants to partner with its platform, positioning itself as a more cost-effective alternative to Meituan and Ele.me. Moreover, JD aims to compete in the high-demand quick commerce market, where rapid delivery services are crucial. With its extensive logistics network, JD is well-positioned to meet this demand, potentially transforming the food delivery landscape in China.
The Road Ahead for JD Takeaway
JD Takeaway has the potential to carve out a significant niche in China’s food delivery market, but it faces key challenges. Building a critical mass of restaurant partners is crucial, as JD’s zero-commission offer is enticing but must be sustained with a steady influx of merchants. Additionally, JD Takeaway needs to improve its delivery speeds to meet the demands of fast-paced consumers. As the service expands, diversifying offerings and cuisines could further enhance its appeal. JD’s logistics network, combined with its focus on reducing operating costs for merchants, is essential to long-term success. Whether JD can rival Meituan and Ele.me remains uncertain, but its aggressive strategy and strong infrastructure make it a competitor to watch.
Learning for Startups and Entrepreneurs
JD’s bold move into the food delivery space offers valuable lessons for startups and entrepreneurs. Firstly, identifying a gap in the market is crucial—JD noticed the dissatisfaction among restaurant owners with high commission fees and leveraged this to offer a compelling solution. Secondly, JD’s use of its existing infrastructure is a textbook example of how startups can capitalize on their strengths to expand into new areas. JD’s strong logistics network, built over years of e-commerce operations, has become a key differentiator in the food delivery market. Lastly, startups should not shy away from aggressive strategies, especially in competitive markets. Offering incentives, like zero commission fees, can quickly attract attention and generate momentum.
About The Startups News
At The Startups News, we believe JD.com’s entry into the food delivery market is a strategic move worth following. If you’re a startup or entrepreneur in the logistics or e-commerce sectors, JD’s ability to leverage its existing infrastructure for new services can serve as a blueprint for your business growth. Whether it’s expanding into new markets or improving service efficiency, JD’s example shows how a well-planned expansion strategy can help startups break into highly competitive industries.
