Liu Qiangdong Denies Ride-Hailing Entry, Discusses JD’s Focus on Food, Wine, and Travel: “We Can Succeed”

In a bold move that has the market buzzing, JD.com founder Liu Qiangdong is signaling a full-steam-ahead approach to the competitive world of hospitality and travel. Speaking to CNBC AI News today, Liu expressed his confidence in JD.com’s ability to disrupt these established sectors, laying out a vision that combines the company’s extensive logistics network with a focus on cost reduction for consumers and partners alike.

“I believe we can succeed,” Liu stated emphatically, when discussing the company’s venture into the food, travel and hospitality industries. He highlighted JD.com’s potential to “provide a new channel for hotels and restaurants,” setting the stage for a competitive environment centered around its supply chain capabilities.

The strategy, according to Liu, hinges on leveraging JD.com’s logistics and financial prowess. “We aim to lower the costs of our supply chain by 20%,” he explained.
While the industry average gross margin is typically 60%, JD.com aims to achieve this through its financial and industrial strengths, which will allow them to create meaningful value for partners and to reduce costs for consumers by as much as “two-thirds.”

When pressed on rumors of entering the ride-hailing market, Liu offered a coy denial, stating, “Who said that we are entering ride-hailing?”

Expanding on this strategy, Liu highlighted JD.com’s strategic roadmap, starting with convenience stores, where they already have a significant footprint of 1.5 million locations. Following that model, JD.com plans to expand into food delivery, dining, and ultimately, hotels and travel.

Further solidifying the company’s commitment, JD.com CEO Xu Ran reiterated the strategic direction amid reports of shifting focus toward these high-growth sectors in the second half of the year. Xu confirmed, “Our strategic direction is clear.” She further elaborated, “We are exploring various opportunities in local services, such as home services. JD.com is a company that highly encourages innovation. We will not exclude doing different things, but the overall direction of instant retail and local life will remain unchanged. In fact, we have been doing a lot of business, but we have not been as high-profile.”