$JD.com(JD)$ Why is JD venturing into food delivery? The main reason is that $MEITUAN(MPNGF)$ 's flash purchase business poses a significant threat to JD's "speed" in retail, pushing JD to enter the "instant retail" space.
Dada serves as the fulfillment driver for JD's efforts in this sector. In the future, competition in instant retail will largely come down to supply chain and fulfillment, with order density being the key. While food delivery is a tough challenge, this is a bold move from JD to increase order volume and share fulfillment costs.
I’m optimistic about JD’s potential in this area—excited to see where they take instant retail!
Comments