China's e-commerce giant JD.com has announced its entry into the fiercely competitive food delivery industry in the country. The company revealed its plan on Tuesday to onboard catering merchants onto its delivery platform.
In a post on its official Weixin account, JD.com invited merchants to "Join us now, zero commissions all year round!" Catering businesses signing up with JD Takeaway before May 1 will benefit from commission-free services throughout the year.
JD.com emphasized in its announcement that JD Takeaway aims to offer extensive support to merchants, with a focus on advancing the health and sustainability of the food delivery sector.
China's food delivery market is primarily dominated by market leaders Meituan and Alibaba's Eleme.
This move comes as JD.com contends with fierce competition in China's rapidly evolving e-commerce landscape, characterized by established giants like Alibaba Group, PDD Holdings, and emerging platforms such as Douyin.
In response to the economic slowdown and weakening consumer spending, JD.com has initiated discount campaigns to stay competitive. However, these price wars have impacted the company's stock performance.
With its well-established self-operated logistics network, JD.com enables same-day or next-day delivery across most regions in the country.