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English|Meituan Has a New Food Delivery Rival: JD.com

BEIJING, June 17 (TMTPOST)— China’s largest food delivery company Meituan is set to confront new challenges from a well-matched rival, the No.2 online retailer in the country.
English|Meituan Has a New Food Delivery Rival: JD.com
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Source: Visual China
JD.com has considered and worked on the food delivery service, and when we launch the service depends on our capacity and when we can build a team of talents, Xin Lijun, CEO of JD Retail, divulged in a recent interview with Bloomberg. Xin didn’t reveal details of new business plan but noted JD’s logistic unit Dada Nexus Ltd. has great capability on same-city delivery, suggesting it has an advantage on last mile delivery in the food sector.
Xin’s remark echoed the previous report of possible business expansion. JD will start trial of food delivery service through the app of JD Daojia, an on-demand retail and delivery platform, LatePost reported last week. The Tencent’s online media outlet said that cities including Zhengzhou have been chosen to as do the pilot project, and Dada will take charge of the delivery.
【English|Meituan Has a New Food Delivery Rival: JD.com】In the same interview, Xin expected sales of the June 18th mid-year shopping festival this year to surpass last year. But he warned that the outbreak this year, completely different from the year 2020, has indeed impacted people’s livelihoods, which would “probably take longer to recover”. In XIn’s opinion, the Chinese economy in the first half of the year has been under pressure as a result of waves of the Covid outbreaks that caused so much uncertainty to the economy. “The impact of the Covid-stricken cities is larger and we are seeing that at the end of the outbreaks, there is no rapid recovery, which is very worrying to us,” the top executive said. He added that JD have not seen the consumption recovery yet in the second quarter as the outbreak has massively hit the overall consumption.
In his interview with CNBC on Friday, Xin expressed optimistic about the economic recovery in the long run, though admitting the near-term pressure. He said the stimulus policies from Beijing would take effect in the current and next quarter, and China’s economy was expected to improve in the second half of the year, with better performance next year.

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