MoonFox Data Releases New Report: Instant Retail Becomes the Next Battleground as JD.com and Meituan Intensify Food Delivery Competition in China

Shenzhen, June 03, 2025 (GLOBE NEWSWIRE) — [Shenzhen, China] – [June 3, 2025] – MoonFox Knowledge, a number one supplier of market intelligence and knowledge analytics, right now launched its newest report, “Instantaneous Retail Stays a Lengthy-Time period Battle, and the Meals Supply Battle Is Simply the Starting.” The report reveals how China’s on the spot retail sector is getting into a brand new part of fierce competitors, with JD.com and Meituan on the forefront, leveraging meals supply as a crucial driver of person progress and market enlargement in 2025.

In 2025, JD.com and Meituan engaged in a number of rounds of on-line “cross-platform jabs” over their meals supply companies. Subjects equivalent to “Meals Supply Battle” and “Meituan Points One other Assertion” trended on social media. Amid the following “disagreement” and mounting public debate, each platforms’ ambitions within the “on the spot retail” area had been laid naked.

Tracing again their improvement, it’s evident that JD.com and Meituan have been investing in on the spot retail for over a decade. As early as 2018, Meituan internally launched the “Flash Sale” model targeted on on the spot supply of retail objects. Nonetheless, after 7 years and a number of rounds of fierce competitors in neighborhood group buy, “Meituan Flash Sale” was solely formally launched as an unbiased model in 2025. In the meantime, from 2015 to 2023, JD.com steadily bolstered its capabilities in provide chain, digitalization, and logistics. By integrating various service segments, together with JD Well being, JD Automotive Care, and comfort supermarkets, the corporate established a strong localized service chain. In 2024, constructing on this built-in capability, JD.com formally unveiled “JD Instantaneous Supply” as its flagship on the spot supply service.

Desk 1: Improvement Historical past of Instantaneous Retail Enterprise on Varied Platforms

Knowledge Supply: Public data, compiled by MoonFox Analysis Institute

I. Instantaneous Retail Exhibits Robust Potential, however Sustained Survival Stays Difficult

To start with, it’s important to make clear the ideas of native life companies and on the spot retail: Native life companies consult with using on-line channels to show details about native brick-and-mortar companies, with transactions accomplished offline companies (via in-store visits or residence). This mannequin emphasizes “geographic relevance”. Instantaneous retail, as a key part of native life companies, entails delivering merchandise from native retail fashions (equivalent to supermarkets, warehouses, and storefronts) on to customers via same-city supply. It covers a variety of classes, together with meals & drinks, contemporary produce, electronics, and prescription drugs. Companies like hourly supply, half-day supply, neighborhood group buy, and meals supply all fall throughout the scope of on the spot retail. Its excessive time sensitivity is the important thing issue distinguishing it from conventional e-commerce and parcel supply.

The native life companies sector is consistently seeing the emergence of recent entrants. Nonetheless, most of those newcomers are likely to give attention to “in-store” enterprise fashions moderately than delivery-heavy companies, because the latter demand strong and fast-changing supply ecosystems that many discover tough to maintain.

For instance, Douyin launched “Beckoning Meals Supply” in 2021 and fashioned strategic partnerships with service suppliers like Ele.me, DADA, and SF Specific. Nonetheless, after lukewarm outcomes, Douyin Life Companies pivoted its native service technique to give attention to the enterprise from group buy to in-store visits. Kwai trialed meals supply via chosen native life service retailers in 2023 however didn’t scale up, sustaining its give attention to in-store offers of group buy. DiDi tried to launch meals supply twice in China however failed each occasions and has since shifted its meals supply ambitions to abroad markets in 2025. Group group buy manufacturers like Good Tuan, Chengxin Chosen and MissFresh shut down round 2023 on account of operational difficulties…

Regardless of these setbacks, on the spot retail nonetheless holds huge potential inside China, particularly in lower-tier markets.

Business statistics present that in 2024, China’s on the spot retail market reached roughly RMB 780 billion, accounting for less than 6% of complete on-line retail of bodily items. The market distribution between main cities and county-level areas is roughly 7:3. By 2030, the market is predicted to surpass RMB 2 trillion.

Desk 2: Instantaneous Retail Market Development in China (2018 – 2030)

Knowledge Supply: Chinese language Academy of Worldwide Commerce and Financial Cooperation, Nationwide Bureau of Statistics, Studies from SDIC Securities, compiled by MoonFox Analysis Institute.

II. Platforms Face Development Nervousness and Urgently Want New Development Curves

For JD.com, native life companies stay fertile floor with important untapped potential. Amongst them, on the spot retail, characterised by excessive buy frequency and speedy conversion, is undoubtedly a crucial lever for driving enterprise progress and attracting UV.

Desk 3: Comparability of Totally different Retail Fashions (In Phrases of Profitability Effectivity: Instantaneous Retail > Conventional E-commerce > Offline Retail)

Conventional e-commerce has handed its high-growth part. Lately, large-scale promotional occasions equivalent to “618” and “D11” have misplaced their earlier traction, signaling shopper fatigue in direction of extreme discounting and promotional gimmicks. In response, e-commerce platforms equivalent to Taobao, JD.com, and Vipshop have prolonged promotional durations and launched “Billion-RMB Subsidy” to take care of complete gross sales progress. Nonetheless, Pinduoduo’s speedy rise and the rising competitiveness of rising e-commerce platforms like Douyin and Kwai have created new challenges. JD.com’s dominance, significantly within the electronics product class, is now underneath menace from a number of fronts.

Throughout Meituan’s Q3 2024 monetary report audio convention, founder Wang Xing commented on business tendencies, stating that on the spot retail will finally account for over 10% of the entire e-commerce market, and that Meituan Flash Sale’s progress has exceeded expectations. The 2024 monetary report famous: “In 2024, ‘Meituan Flash Warehouses’ skilled important progress, significantly in lower-tier markets, the place they’ve develop into a key progress channel for a lot of retailers. Quite a few main conventional retail corporations have adopted ‘Meituan Flash Warehouse’ mannequin… As our on the spot supply enterprise expands, we stay dedicated to constructing a sustainable ecosystem.”

In response to Meituan’s monetary reviews from 2022 to 2024, the platform’s gross revenue margin has grown by over 30% YoY for 3 consecutive years, with its gross margin rising from 28% to 38%. Core native companies income maintained a YoY progress price exceeding 20%, and new enterprise revenue continued to speed up. Though Meituan Flash Sale had not but formally launched, it was repeatedly highlighted in annual monetary reviews over the previous 5 years as a key progress engine for the platform.

III. JD.com’s Shock PR Offensive: Fast Enlargement into Meituan’s Core Territory

In early April, JD.com CEO Xu Ran said in an interview with 36Kr that the meals supply enterprise may assist JD.com improve each person base and buy frequency, extending its service situations.

On April 15, a leaked 7-minute inner assembly audio recording of Liu Qiangdong revealed his views on the home meals supply business: Meals supply platform commissions can attain as excessive as 25% (typically over 30%), which he attributed to monopolistic practices that pressure small and medium-sized retailers to chop meals high quality, negatively impacting the patron expertise. He additionally proposed differentiated insurance coverage insurance policies for full-time and part-time couriers to higher safeguard their rights.

As early as 2022, Meituan’s monetary report confirmed that its meals supply enterprise had reached a peak of over 60 million orders per day. Though there may be nonetheless a major hole so as quantity between the 2 platforms, JD Meals Supply achieved over 10 million in a single day on April 22, reflecting speedy progress.

Evaluating the every day new person progress for service provider and courier platforms because the begin of 2025, JD Instantaneous Supply Service provider Version and DADA Instantaneous Supply Courier Version apps noticed a UV surge. In response to MoonFox Knowledge, JD Instantaneous Supply Service provider Version app peaked in every day new person numbers on April 24. Each platform initiatives and market responses clearly point out that JD is making a daring incursion into Meituan’s meals supply “stronghold”.

Desk 4: New Each day Person Development on Service provider & Courier Platforms (2025)

Knowledge Supply: MoonFox iApp, Knowledge Cycle: January 1, 2025 – April 27, 2025

For customers, switching between meals supply apps has low friction. With a transparent intent to order, pricing and supply time are sometimes the one decisive components. Final summer time, Ele.me attracted UV through its “Reply to Win Free Meal” marketing campaign, which relied on extraordinarily low reductions and easy, partaking interactions. Whereas Meituan launched “Meal Group Shopping for”, considerably reducing common order worth to retain customers via quantity gross sales, although at the price of some eating expertise. As well as, Ele.me additionally tied its premium membership to Taobao’s 88VIP, leveraging excessive member stickiness from Taobao to spice up Ele.me order frequency.

For platforms, the quick migration of customers and excessive utilization frequency makes meals supply the very best UV lever for JD.com to develop its on the spot retail enterprise. However earlier than that, onboarding numerous restaurant retailers and recruiting a ample courier fleet are important. Since launching JD Meals Supply on February 11, the platform has used a variety of PR techniques to develop into a serious business matter, rapidly shifting past its chilly begin right into a part of explosive progress.

• Late February: JD took the lead in advocating reform within the meals supply sector, specializing in courier welfare. This proactive stance gave JD the higher hand within the preliminary “disagreement”. With value-driven messaging and concrete coverage help, JD.com gained public recognition and courier endorsement.
• In April, JD.com and Meituan entered a second spherical of confrontation. JD.com issued an open letter condemning Meituan’s varied “misdeeds” and concurrently rolled out new help insurance policies and promotional advantages, as soon as once more pushing “JD Meals Supply” into the highlight throughout the web. The next day, “Liu Qiangdong Takes on Meals Supply” showcased JD’s robust dedication to creating its meals supply enterprise. With a light-hearted and humorous public picture, Liu gained over netizens, who jokingly dubbed his supply persona “GG Bond”. This, coupled with the platform’s swift advertising response, sparked a brand new wave of viral consideration.

Throughout this second “disagreement” wave, though Meituan responded swiftly with rebuttals, and a few couriers questioned the accuracy of JD’s claims on social media, the incentives supplied by JD helped counterbalance earlier criticism. Nonetheless, general, the assorted incentives launched by the platform are serving to to offset the adverse public opinion brought on by early-stage points. JD has nonetheless managed to earn the belief of most retailers and couriers.

Desk 5: Platform-level New Person Scale Development

Knowledge Supply: MoonFox iApp, Knowledge Cycle: January 1, 2025 – April 27, 2025

Desk 6: Key Occasions within the 2025 “Meals Supply Battle”

IV. The “Meals Supply Battle” Ushers in a New Period of Instantaneous Retail Competitors

In April, amid the extraordinary “Meals Supply Battle” between JD.com and Meituan, each Meituan “Flash Sale” and JD’s “Self-operated Instantaneous Supply” companies had been launched concurrently.

Simply forward of the Labor Day vacation, “Taobao Flash Sale” went stay in 50 cities, adopted by a nationwide rollout on Might 2. To drive up order frequency in the course of the vacation, Taobao partnered with Ele.me to challenge substantial shopper subsidies equivalent to free-order card and treat-voucher card.

In response to MoonFox Knowledge, since April 2025, JD.com’s every day new person quantity has constantly elevated, and has surpassed Meituan’s since April 16. For the reason that launch of its meals supply service, JD.com has additionally seen a gentle rise in common person on-line time. As of April 23, common every day on-line time reached 14.27 minutes per person, elevated by 54% in contrast with the identical interval final 12 months.

Desk 7: Adjustments in JD.com’s Lively Person On-line Time

Knowledge Supply: MoonFox iApp, Knowledge Cycle: April 28, 2024 – April 23, 2025

Regardless of reviews of points equivalent to “inefficient processes” and “system bugs” with JD Meals Supply, there are nonetheless many shortcomings within the courier operation procedures that have to be addressed. Nonetheless, pushed by advantages associated to fee charges and worker safety, numerous couriers are switching platforms, whereas meals supply retailers and offline shops are additionally accelerating their entry into “JD Instantaneous Supply”. With intensified funding in enterprise improvement fashions, infrastructure building, and supporting insurance policies, each JD and Meituan are stepping up efforts to grab market share.

Desk 8: Platform Traits Comparability

Knowledge Supply: Public data, compiled by MoonFox Analysis Institute

Meituan’s on the spot retail enterprise is an extension of its meals supply capabilities, counting on third-party franchises and offline retail retailer partnerships for warehousing, and service-provider-based courier fashions. This asset-light technique performs to Meituan’s platform operation strengths, enabling speedy territorial enlargement throughout cities.

JD’s on the spot retail enterprise locations larger emphasis on its “self-operated” mannequin, leveraging its early investments in e-commerce warehousing as a key basis. It expands operations based mostly on regional success facilities whereas strengthening partnerships with offline shops, significantly branded chain shops, to boost supply effectivity and guarantee product high quality, a technique that aligns with customers’ present notion of JD’s authenticity and logistics capabilities in e-commerce. The provision of native couriers primarily depends on contracted riders from DADA Instantaneous Supply. Lately, JD Group’s rising fairness stake in DADA has additional strengthened its affect over last-mile supply within the on the spot retail sector.

The eye generated by the “Meals Supply Battle” and the growth of on the spot retail has created invisible strain for conventional e-commerce giants like Taobao. Taobao, backed by Alibaba’s huge ecosystem, together with Tmall Grocery store, Amap, Ele.me, Freshippo, and Alipay, has promising alternatives within the native life service sector. Nonetheless, the coordination between completely different enterprise items and the logistics effectivity throughout the final 3 to five kilometers stay key challenges that the platform should overcome to scale its on the spot retail enterprise.

At current, Taobao Flash Sale seems to be a mixture of Ele.me’s authentic meals supply companies and Taobao’s earlier “hourly supply” function, swiftly getting into the competitors to drive UV and person engagement. Throughout the Labor Day vacation, matters equivalent to #Taobao Flash Sale Crashed# even trended on social media platforms.

For Meituan, on the spot retail represents a brand new progress engine; For JD.com, it’s a strategic lever to drive progress throughout its complete e-commerce ecosystem. In contrast with the overt and covert competitors between the 2 giants, the speedy launch of Taobao Flash Sale is extra of a defensive transfer. Its long-term prospects stay to be seen. For now, all main platforms are nonetheless targeted on strengthening infrastructure and optimizing operational effectivity, with on the spot retail shaping as much as be a long-term battle.

About MoonFox Knowledge

As a sub-brand of Aurora Cellular, MoonFox Knowledge is a number one knowledgeable in knowledge insights and evaluation companies throughout all situations. With a complete, steady, safe and compliant cell massive knowledge basis, in addition to skilled and exact knowledge evaluation expertise and AI algorithms, MoonFox Knowledge has launched iAPP, iBrand, iMarketing, Various Knowledge {and professional} analysis and consulting companies of MoonFox Analysis, aiming to assist corporations acquire insights into market progress and make correct enterprise selections.

About Aurora Cellular

Aurora Cellular (NASDAQ: JG) established in 2011, is a number one buyer engagement and advertising expertise service supplier in China. Its enterprise contains notification companies, advertising progress, improvement instruments, and knowledge merchandise.

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