JD.com vs. Meituan: The Renewed Battle for China's Food Delivery Market
23 April 2025 路 Uncategorized 路
The escalating competition between JD.com (09618.HK; JD.US) and Meituan (03690.HK) in the food delivery sector continues to intensify. According to Red Star Capital Bureau, on April 21st, JD released an open letter accusing recent competitors of employing a "choose one" strategy鈥攅ffectively prohibiting riders from accepting orders through Jingdong's second-tier delivery service and threatening bans for noncompliance. This followed online circulation of chat screenshots containing phrases suggesting Meituan was blocking riders from working on other platforms; Meituan subsequently denied these claims as rumors.
Since JD launched its food delivery business, the companies have clashed repeatedly, fueled by mutual encroachment into each other's core markets and a broader battle for dominance in the burgeoning instant retail sector.
JD stated that this "choose one" behavior from competitors could lead to riders experiencing income reductions of 16%-25%. To support its rider base and ensure they can freely accept orders across platforms, JD introduced emergency aid measures including guaranteeing sufficient order volume for those banned by other companies and increasing full-time rider recruitment.
Meituan refuted these claims on April 19th, asserting that it has never restricted riders from working with alternative platforms such as Ele.me or Flash Express.
At the heart of this dispute lies both companies' efforts to gain a competitive advantage in instant retail鈥攁n area where Meituan already holds significant ground through its "Mingtuan Dashu" service. JD views entering food delivery as essential for expanding into this market and leveraging traffic generated by these services.
Both organizations are demonstrating their commitment with substantial investments in subsidies and infrastructure improvements, despite the associated high costs.
Since JD launched its food delivery business, the companies have clashed repeatedly, fueled by mutual encroachment into each other's core markets and a broader battle for dominance in the burgeoning instant retail sector.
JD stated that this "choose one" behavior from competitors could lead to riders experiencing income reductions of 16%-25%. To support its rider base and ensure they can freely accept orders across platforms, JD introduced emergency aid measures including guaranteeing sufficient order volume for those banned by other companies and increasing full-time rider recruitment.
Meituan refuted these claims on April 19th, asserting that it has never restricted riders from working with alternative platforms such as Ele.me or Flash Express.
At the heart of this dispute lies both companies' efforts to gain a competitive advantage in instant retail鈥攁n area where Meituan already holds significant ground through its "Mingtuan Dashu" service. JD views entering food delivery as essential for expanding into this market and leveraging traffic generated by these services.
Both organizations are demonstrating their commitment with substantial investments in subsidies and infrastructure improvements, despite the associated high costs.