China's Food Delivery War Heats Up As JD.com Recruits Thousands Of Full-Time Riders

JD.com JD has begun recruiting full-time meal delivery riders through JD Logistics, stepping up its competition with Meituan MPNGY and Alibaba Group Holding BABA in China’s food delivery space.

The company launched hiring efforts to expand its workforce for its food delivery arm, JD Food Delivery, which now handles over 25 million orders daily, SCMP reported on Wednesday.

JD.com has primarily relied on its on-demand delivery unit, Dada Nexus, with 1.3 million active riders annually, to support this service.

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According to CEO Sandy Xu Ran, as of mid-June, JD.com had hired more than 120,000 full-time riders and aims to reach 150,000 by the quarter’s end. Still, its rider count remains far below Meituan’s 7.45 million and Alibaba’s Ele.me with about 4 million.

Analyst Cheng Liteng told SCMP that JD.com’s use of full-time riders could improve service quality and reliability. However, he warned that managing an extensive in-house fleet could raise costs and strain profit margins unless the company improves efficiency.

The online food delivery market in China, valued at an estimated $81.9 billion in 2024 and projected to soar to $197.9 billion by 2033 (a CAGR of 9.79% from 2025-2033), is witnessing an escalating battle for supremacy among its major players.

This robust growth is fueled by increasing internet penetration, a growing consumer demand for convenience, diverse culinary options, aggressive marketing tactics, and the incorporation of advanced technologies like artificial intelligence.

Meituan currently dominates this fiercely competitive arena, holding a commanding 70% market share with its daily orders reportedly reaching 90 million. However, rivals are making strategic moves to gain ground.

This week, Alibaba demonstrated its intent by merging its food delivery platform Ele.me and its online travel agency Fliggy directly into its core e-commerce business, a move aimed at creating a more unified and streamlined user experience.

Alibaba has also announced a significant milestone, with its daily quick commerce orders reaching 60 million. Meanwhile, JD.com’s food delivery service, a more recent entrant, has already achieved 25 million daily orders in early June.

Price Action: JD shares are trading higher by 1.41% to 33.04 premarket at last check Wednesday.

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• Meituan And JD Shares Have Bled $100 Billion In Market Value Since Late 2024 — China’s Food Delivery Wars Are Thinning Out Its Tech Giants

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