JD.com hopes to slow down Meituan’s expansion in the instant retail sector through food delivery while also boosting its main platform’s GMV and user engagement. Liu Qiangdong has returned to his most familiar battlefield.
In a viral video from April, Liu Qiangdong, dressed in JD.com’s food delivery uniform, sat with a group of delivery riders, frequently raising his glass to toast them. “I never refuse to drink with my brothers,” he said.
Calling employees “brothers” and drinking with them is a familiar tactic for JD.com’s founder. Footage of Liu riding an electric scooter through streets also became trending topics.
In previously circulated materials, Liu once said, “Don’t compare our marketing with Lei Jun’s—we can’t match him.” But when it comes to Wang Xing, that seems to be a different story.
This is a business era without boundaries. No internet company can comfortably defend its core territory. Over the past few years, Liu Qiangdong has become increasingly visible in the public eye, with internal speeches frequently leaked, showcasing an aggressive stance.
As e-commerce is reshaped by short videos and live streaming, JD.com may feel the disappearance of boundaries more acutely than other tech giants. Meituan, on the other hand, has always been seen as a boundary-less internet company. Wang Xing started with food delivery to transform local life services through the internet, eventually expanding into digital 3C products—originally JD.com’s territory.
The drama of this battle lies in both sides adopting the tactic of “attacking what the enemy must defend.”
Meituan’s flash sales directly target JD.com’s profit core, while JD.com uses food delivery to shake Meituan’s cash flow foundation. This mutual aggression has turned the instant retail battlefield into the main stage for internet giants.
Data: Cheng Lu | Graphics: He Miao
All-Out Assault on Food Delivery
“Clearly, food delivery is JD.com’s top priority this year,” e-commerce analyst Li Chengdong told Interface News.
Li did the math: JD.com currently loses 10 yuan per food delivery order. With daily subsidies for 5 million orders, that’s a daily loss of 50 million yuan. Even if order volume grows to 20 million with losses narrowing to 5 yuan per order, daily losses would still hit 100 million yuan. JD.com’s annual profit is over 40 billion yuan, meaning it’s dedicating a significant portion to this new venture—showing its determination.
In past e-commerce competition, “speed” was JD.com’s key advantage and a major reason affluent users stayed loyal. But now, Meituan’s 30-minute delivery is challenging that.
More critically, Meituan’s expanding instant retail categories are encroaching on JD.com’s core interests.
According to Blue Whale News, Meituan’s flash sales have surpassed JD.com in several categories: 3C and appliance orders reached 40% of JD.com’s total, with computer/office supplies exceeding JD.com’s volume and mobile phone orders at 40% of JD.com’s. Beverages, dairy, and snacks have also overtaken multiple e-commerce platforms.
This means when users need a phone, headphones, or medicine immediately, JD.com isn’t their first thought anymore. Its 20-year “211 next-day delivery” moat is being eroded by Meituan’s 30-minute delivery.
Meituan’s core local commerce CEO Wang Puzhong stated non-food orders have exceeded 18 million daily.
JD.com’s anxiety also stems from needing new growth engines. While Alibaba focuses on AI, Pinduoduo dominates overseas, and Douyin’s e-commerce surges, JD.com’s GMV has fallen to fourth place with no clear second pillar.
Recent attempts like Jingxi (a Pinduoduo rival) and cloud computing (lagging behind Alibaba/Tencent) have underperformed. Core retail growth slowed from 36.8% in 2020 to 1.7% in 2023.
With Liu Qiangdong’s 2024 return and instant retail growth, JD.com’s non-GAAP net margin improved to 4.1% in 2024. Insiders revealed Liu asked his team to identify a second growth curve—leading to the food delivery push.
JD.com isn’t starting from scratch: Dada’s 1.3 million riders and nationwide network provide infrastructure, while its warehouses offer fulfillment stability.
Data: Cheng Lu | Graphics: He Miao
Territorial Expansion
Public exchanges between giants aren’t just “PR wars”—they’re battles for user mindshare.
On April 21, JD.com accused rivals of forcing riders into “exclusive partnerships” in an open letter. Earlier, it announced social insurance for riders, with Liu calling withholding benefits “shameful”—adding 3.5 billion yuan in annual costs.
With users and merchants already loyal to Meituan, JD.com’s “values offensive” targets Meituan’s controversial labor practices—a social sore spot—while also poaching riders.
By March, JD.com had recruited 10,000 full-time riders, planning to double its 50,000-target in three months—all with full benefits.
For merchants, JD.com focuses on chains (Luckin, Heytea, Haidilao, etc.) with 0% commissions and regional promotions. CEO Xu Ran pledged 10 billion yuan for “quality food delivery.”
But JD.com’s ground operations appear rushed. Since its February 11 launch, JD Food Delivery signed 450,000 merchants in 42 days—yet faced operational hiccups like abrupt policy changes and delayed approvals.
Its multi-layer outsourcing model leaves grassroots promoters vulnerable. By April, per-merchant bonuses had halved as the market saturated.
Graphics: He Miao
Chances of Success?
The gamble lies in whether JD.com can sustain “feeding new ventures with core profits.” Analyst Li Chengdong believes reaching 20 million daily orders (second place) could justify losses if e-commerce benefits.
On April 22, JD Food Delivery hit 10 million daily orders in 50 days—versus Meituan’s 80 million peak. But low order density hurts efficiency: some riders report half the orders of rival platforms despite higher fees per delivery. Strict penalties (50-400 yuan for delays) also deter riders.
Food delivery is a high-barrier, low-margin grind where Baidu, Douyin, and Kuaishou failed. Expert Zhuang Shuai notes two key hurdles: 1) Restaurants’ “limited supply” makes stealing existing merchants the only option; 2) “Peak delivery” demands massive infrastructure investment—”like daily Double 11.”
J.P. Morgan estimates JD.com may capture 5% market share by 2025 (10% peak), but warns of potential retreat in 2026.
JD.com’s “Besiege Wei to Rescue Zhao” strategy aims to divert Meituan from instant retail. Whether it succeeds depends on sustaining subsidies and whether food delivery traffic can revitalize JD.com’s core e-commerce.
