As China’s instant retail market surges towards an estimated 2 trillion yuan by 2030, leading players such as JD.com and Meituan intensify efforts through technological innovation, expanded delivery workforces, and improved rider welfare to capture greater market share and redefine urban commerce.
Competition in China’s instant retail and food delivery sector is intensifying as leading online platforms escalate efforts to capture greater market share and accelerate the digital transformation of traditional stores. Experts have highlighted that these companies are focusing on technological innovation, supply chain improvements, and streamlined delivery networks to boost efficiency and enhance consumer experience.
Chinese e-commerce giant JD recently announced a new policy effective Monday guaranteeing that consumers will receive their orders on time or get them free if deliveries are delayed by more than 20 minutes. This initiative comes amid increasing competition from rivals such as Meituan and Alibaba Group’s Ele.me, which dominate the food delivery market.
JD also revealed plans to double its full-time delivery rider workforce from 50,000 to 100,000 in the next three months. The company committed to allocating sufficient orders to delivery riders who had previously been dismissed by competitors for accepting JD platform orders. JD emphasized it will not compel riders to choose between food delivery platforms, promoting freedom for riders to accept work from multiple services. Furthermore, JD announced it will offer employment opportunities to spouses of delivery personnel.
JD’s push into the food delivery sector began in February and builds on its established strengths in quality control and logistics. “JD has gained an upper hand in quality control and high-efficiency logistics and delivery networks,” said Chen Liteng, senior analyst at the Internet Economy Institute. However, Chen noted JD faces challenges in establishing user habits, expanding its delivery rider base, and balancing cost reduction with profit margin pressures.
By comparison, Meituan boasts a massive delivery network with roughly 7 million staff, supported by years of experience in food fulfillment. Nonetheless, its higher commission fees have drawn consumer criticism. Chen suggested that both JD and Meituan should further leverage automation and intelligent technologies to optimize dispatching, reduce operational expenses, and increase customer retention and repeat purchases.
Instant retail, a fast-growing segment in China’s digital economy, allows consumers to order from online platforms while merchants execute quick home deliveries either themselves or via third-party couriers. Typical delivery times range from 30 to 60 minutes. According to the Chinese Academy of International Trade and Economic Cooperation, China’s instant retail market reached 650 billion yuan (about $89.2 billion) in 2023, representing a 28.89 percent year-on-year growth, with forecasts estimating the market to exceed 2 trillion yuan by 2030.
JD has taken steps to improve delivery worker welfare by becoming the first platform in China to provide full-time food delivery riders with comprehensive social insurance and housing funds. Additionally, from February, catering merchants joining JD’s platform before May 1 are eligible for a full year of commission-free services and extensive support.
Meanwhile, Meituan has announced social insurance plans for both full-time and part-time delivery riders starting in the second quarter of the year. It recently launched Meituan Shangou, an instant retail service offering 24-hour shopping with deliveries completed within approximately 30 minutes. The service ranges from fresh groceries to electronics, beauty products, and pet supplies.
Zhu Keli, founding director of the China Institute of New Economy, observed that JD leverages its supply chain efficiency and brand reputation to explore growth in food delivery, while Meituan capitalizes on its extensive local merchant network to strengthen its instant retail offerings. Hong Yong, an associate research fellow at the Chinese Academy of International Trade and Economic Cooperation, underscored that heightened competition in the instant retail space will focus on enhancing user experience, broadening service offerings, and improving supply chain efficiency.
This intensified rivalry among China’s major online platforms highlights the importance of technological adoption and operational excellence in a rapidly evolving digital retail landscape, with market participants striving to capture a growing consumer base and reshape how goods are delivered in urban centers.
Source: Noah Wire Services
