food delivery

Alibaba and Meituan ignited a fierce food delivery price war with deep discounts, driving massive user traffic and causing temporary outages for Meituan. Goldman Sachs projects this competition to peak in September, potentially leading to significant losses for major players but a strategic gain in user engagement for cross-selling. Pinduoduo is positioned as an opportunistic winner by abstaining from the promotion war.

Meituan’s instant retail platform experienced an unprecedented surge on July 5th, processing over 120 million orders, with food delivery exceeding 100 million. This marked the start of the summer season and led to temporary server disruptions due to overwhelming demand. Meituan assured users and merchants that services were restored and negative impacts would be mitigated.

JD.com’s food delivery service, JD Delivery, has significantly expanded its reach, serving over 15,000 corporate clients with a daily order volume exceeding 25 million. Holding a 31% market share, and 45% in the premium segment, the service operates in 350 cities, offering 1.5 million restaurant options. Partnerships with major firms provide corporate meal solutions. Nearly 70% of businesses become formal partners within a month, with weekly enterprise meal solution partnerships increasing tenfold in June. User subsidies further enhance the offering.

JD.com has entered the travel and hospitality market, launching the “JD Hotels PLUS Member Program” with commission-free services for hotels. The company aims to leverage its supply chain expertise and food delivery services, offering competitive pricing and eliminating bundled services. While initial airfare prices match competitors, hotel bookings show subsidy benefits. JD.com is also actively recruiting industry professionals to bolster this sector.

JD.com’s founder Liu Qiangdong discussed the e-commerce giant’s supply chain-focused strategy. He clarified the food delivery service aims to improve the fresh produce supply chain, even if front-end operations incur losses. Liu acknowledged past stagnation, announcing new yearly innovation projects, including a stablecoin. He emphasized JD’s commitment to fair profit distribution and highlighted its strong logistics network and operational efficiency as core strengths.

JD.com founder Liu Qiangdong revealed his intent to enter China’s food delivery market, signaling a major competitive challenge to Meituan. He hosted a dinner with key industry figures, including Meituan’s founder Wang Xing, to announce his plans. JD.com launched its food delivery service focusing on quality and lower commissions. It also provides full social security and insurance for its delivery workforce, aiming to attract talent and disrupt the market.

JD.com CEO Xu Ran revealed impressive earnings for the company’s food delivery riders. Full-time riders in Beijing, Shanghai, Guangzhou, and Shenzhen now average nearly RMB 13,000 monthly, a significant increase. This increase comes despite comprehensive benefits. JD.com’s delivery arm is rapidly expanding, with over 120,000 riders and processing over 25 million daily orders, highlighting the company’s commitment to sustainable growth in the food delivery sector.

Outsourced delivery services are transforming China’s food and courier industries. “Last-mile” workers assist delivery drivers, especially in high-rises, for a per-delivery fee, improving speed and customer satisfaction. This model benefits primary riders by freeing up their time and leading to higher order fulfillment and potential earnings. The trend offers substantial daily income for auxiliary workers and addresses logistical challenges faced by delivery and courier services.

In China’s booming food delivery market, JD.com has emerged as a significant competitor, joining Meituan and Ele.me. With over 25 million daily orders as of June 2025, JD holds over 31% market share and leads premium restaurant delivery with 45%. JD’s strategy focuses on high-quality restaurants, employing commission reductions, promotional traffic, and enhanced delivery features to improve the customer experience.

JD.com’s food delivery service is celebrating its first 618 shopping festival, marking rapid growth. The platform, operating in 350 cities with over 100,000 riders, reports over 25 million daily orders, driven by 1.5 million restaurant partners. Stringent measures like video verification and a 40% new partner approval rate highlight its commitment to quality and safety, positioning it as a major player in the food delivery market.