Why is JD.com expanding into food delivery?

JD.com is expanding into food delivery to tap into new revenue streams, enhance its logistics capabilities, and boost the usage of its main e-commerce app.

How much has JD.com invested in its food delivery service?

JD.com has committed to investing 10 billion yuan ($1.4 billion) in customer subsidies over one year to gain market share in the competitive food delivery sector.

What is the current market share of JD.com in the food delivery sector?

As of May 2025, JD.com has captured 7.5% of China's food delivery market, with daily meal orders reaching 20 million.

What are the projected losses for JD.com in the food delivery business?

Research indicates that JD.com may incur 12 billion yuan in food delivery-related losses in 2025 and could reach cumulative losses of 46 billion yuan by 2030.

How have investors reacted to JD.com's food delivery expansion?

Investors have expressed concerns about the escalating price war in the food delivery market, which is negatively impacting profit margins, leading to a decline in JD.com's stock performance.

What measures are Chinese regulators taking regarding the food delivery market?

Chinese regulators have summoned major food delivery companies, including JD.com,to promote fair practices amidst the intense subsidy competition.

Economy

Richard Liu Defends Food Delivery Losses

by Alexandra Hartman Editor-in-Chief June 18, 2025

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Richard Liu Defends Food Delivery Losses

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