Delivery Wars
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Based on JD’s Latest Financial Report, It Seems Delivery Isn’t an Easy Business
JD.com’s Q2 earnings revealed a 22.4% revenue surge to RMB 356.7 billion, driven by a strong 618 shopping festival and robust performance from JD Retail and JD Logistics. However, aggressive expansion into delivery services, particularly JD Delivery, led to substantial losses (RMB 14.8 billion) within the “new businesses” segment, offsetting retail profit gains. Despite increased user engagement and order volume, these subsidies significantly impacted overall profitability, prompting JD.com to shift towards cross-selling strategies to reduce reliance on its retail business.
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* **Meituan Commission Controversy: Merchants Claim 20%, Platform Denies, Revealing the Truth** * **The Meituan Commission Rate Debate: Unveiling the Discrepancy** * **Decoding Meituan’s Commission Rates: A Deep Dive into the Merchant-Platform Dispute** * **Meituan’s Commission Rates Under Scrutiny: Examining the Merchant Perspective vs. Platform Claims** * **Meituan Commission Rates: The Truth Behind the 20% vs. 8% Debate**
Meituan’s local commerce CEO Wang Putao addressed merchant concerns about high commission fees in China’s competitive food delivery market. Merchants perceive commissions around 20%, while Meituan claims effective rates are 6-8%. The discrepancy stems from combining technical service fees (commissions) and delivery service fees. Wang explained that a significant portion of the 20% goes to subsidizing delivery costs, not platform revenue. He also clarified that marketing expenses are largely merchant-driven subsidies, not fees to Meituan, and the issue is low average order values during the “delivery wars”.
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Taobao vs. Meituan: Another “Crazy Saturday” Showdown?
Taobao Instant Delivery and Meituan engaged in an intense delivery war, offering deep discounts and subsidies. This aggressive competition led to a surge in orders for both platforms, benefiting merchants and delivery personnel. While stock prices saw initial dips, the overall impact suggests a dynamic market where new entrants can challenge established players. The rivalry highlights strategic differences, with Meituan focusing on food delivery and Taobao aiming for broader integration of online shopping and instant retail.
