Red Star Capital Bureau reported on September 28th that JD.US (09618. HK) has recently increased its food delivery business. JD APP shows that this business has been placed in the "second delivery zone". At present, it can place orders for Wal Mart, Hema and other large supermarket products, Ruixing, Bawang Chaji and other coffee milk tea, as well as millet home and other urgent digital products.
Red Star Capital noticed that on the JD APP, the "Instant Delivery" entrance and "Homepage" are folded in parallel, and users can also jump to the "Instant Delivery Zone" through the homepage. JD has not yet responded to the progress and planning of this business.
Left: JD APP homepage "Instant Delivery" entrance Right: JD APP "Instant Delivery" page Image source: JD APP
A certain brand revealed differences in fees charged across multiple platforms:
Meituan, Ele.me> JD>; Tiktok
On September 28th, a national chain hotpot brand that was in communication to join JD's "Instant Delivery" revealed to the Red Star Capital Bureau that based on the rates charged by the platform, Meituan and Ele.me> JD>; Tiktok. In terms of delivery costs, if a 100 yuan takeaway order of the same weight is delivered, compared to Meituan's charges, JD's "instant delivery" within 2.5 kilometers is 2.2 yuan cheaper; Within 5 to 8 kilometers, JD's "instant delivery" is 4.19 yuan cheaper. From the percentage of commission, compared to Meituan's cost ratio of 20% -25%, the cost of "instant delivery" to JD.com is approximately 16% -18%.
Under such preferential policies, the attractiveness to the merchant still needs to be measured. The brand explains that entering a new platform is not simply about opening an account, but also requires investment in operational manpower. At the same time, for the Dada Express used by JD's "instant delivery" service, it has been used before due to insufficient transportation capacity, and in extreme cases, there have been situations where no one accepts orders 20-30 minutes after the meal is served. And for the bottom line delivery that catering enterprises are concerned about, such as spillage, leakage, and loss of takeaway food during transportation, JD's "instant delivery" has not yet provided a satisfactory solution.
At present, Bawang Tea Lady has joined JD's "Instant Delivery" platform. On September 28th, Bawang Tea Lady told Red Star Capital Bureau that joining JD's "Instant Delivery" is mainly to test new food delivery channels and expand more new users. At present, the "Instant Delivery" platform attracts merchants to settle in through preferential low price rates and user subsidies. There is still room for optimization in the infrastructure of its food delivery and the supporting experience of key customers.
In 2015, JD Home was launched
At JD.com, the embryonic form of food delivery business began in 2015, with the launch of JD Home as an independent wholly-owned subsidiary to test the local lifestyle business. In June 2022, Xin Lijun, then CEO of JD.com Retail, announced that JD.com had considered entering the food delivery business. "As for when we start doing it, it depends on our abilities and when we can form a talent team," he said
In May of this year, JD.com upgraded its instant retail business to "JD Instant Delivery", integrating the original JD Home and Hourly Delivery services, shouting slogans such as "fastest delivery in 9 minutes" and "free shipping for 9.9 yuan", and launching the "on-time guarantee" service to compensate for overdue orders.
After 9 years, the reason why JD.com has increased its food delivery business is traceable.
On September 17, JD completed the purchase of the shares of Dada Group held by a subsidiary of Wal Mart. So far, JD has acquired all the shares of Dada held by Wal Mart, and the shareholding ratio has increased to 63.24%.
In the second quarter of this year, Dada's catering business saw significant growth. During the Q2 earnings conference call, its Chief Financial Officer, Mao Jun, stated that "the overall revenue of the chain merchant business increased by nearly 50% year-on-year in Q2, with the net revenue of the catering chain merchant increasing by nearly 80% and the number of new stores more than doubling year-on-year." He said that from the perspective of business development trends, the demand for on-demand delivery services in the catering, beverage, supermarket, and other industries is still growing rapidly, and the catering key customer business is the top priority this year.
From the perspective of the food delivery market, Meituan (03690. HK) still dominates. Its semi annual report shows that its revenue in the first half of the year was 155.527 billion yuan, a year-on-year increase of 22.9%; The profit during the period was 16.72 billion yuan, a year-on-year increase of 107.8%.
Previously, Tiktok, a new player with high profile in takeout, had twice heard the news that he was going to buy Yule. However, around August, Tiktok takeout was classified into the instant retail business of Tiktok e-commerce, "hourly delivery". At present, Tiktok's take out button is the last one on its group purchase page.
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