Jing Ji Guan Cha Bao·2025-04-26 14:57Core Insights - The competition between Meituan and JD.com in the instant retail and food delivery market is intensifying, with JD.com aggressively entering the food delivery sector, leveraging high subsidies and rider incentives to attract users and riders [1][2][10] - JD.com's founder, Liu Qiangdong, emphasizes the need for fair practices in the food delivery market, indicating a strategic shift towards enhancing service quality and rider welfare [2][10] - Meituan has been developing its instant retail business for several years, with significant growth in its flash purchase segment, which is now a key revenue driver [12][14] Company Strategies - JD.com has introduced substantial subsidies for food delivery, with daily consumer incentives and a focus on high delivery prices to attract riders from competitors [1][10][24] - Meituan's strategy includes leveraging its existing delivery network to expand into instant retail, with a focus on high-demand products and rapid delivery times [12][14] - Both companies are competing for market share in the food delivery sector, with JD.com aiming to disrupt the established dominance of Meituan and Ele.me [22][24] Market Dynamics - The food delivery market in China is growing, with a reported market size of approximately 1.63 trillion yuan, and JD.com is positioning itself to capture a share of this high-frequency traffic [10][22] - Meituan's core local business, which includes food delivery and instant retail, accounts for nearly three-quarters of its revenue, highlighting the importance of these segments for its overall growth [12][14] - The competitive landscape is shifting, with JD.com rapidly increasing its order volume and rider recruitment, while Meituan is responding with its own subsidy strategies to retain market share [17][24] Financial Performance - JD.com's revenue reached a historical high of 1.16 trillion yuan in 2024, but its growth rate has been declining over the years, prompting the need for diversification into food delivery [6][8] - Meituan's flash purchase segment has seen significant growth, with daily order volumes increasing substantially, indicating a successful transition from food delivery to broader instant retail offerings [14][15] - Both companies are facing pressure to maintain profitability while investing heavily in subsidies and rider incentives, raising questions about the sustainability of their aggressive growth strategies [23][24]