Latest news with #instantcommerce
South China Morning Post
31-07-2025
- Business
- South China Morning Post
China's delivery war intensifies as Meituan, JD.com build central kitchens for takeaways
Meituan and are taking China's delivery war to another level, as the two instant commerce rivals have started building thousands of central kitchens in strategic locations to speed up fulfilment of online food orders. On-demand local delivery giant Meituan is expected to continue leading the market through its launch of 1,200 so-called Raccoon Restaurants over the next three years, a plan it revealed in early July. These facilities are designed as food court-like hubs that host various restaurant chains, which operate their kitchens only for takeaways. These sites are expected to help drive down costs and boost efficiency for Meituan's restaurant chain partners, according to a company statement. meanwhile, announced a plan to invest 1 billion yuan (US$139 million) to recruit 'cuisine partners', as part of the firm's roll-out of 10,000 self-operated 7Fresh kitchens over the next three years. This infrastructure would enable the company to promote 1,000 different sets of menus to a nationwide audience. The e-commerce giant described 7Fresh kitchens as 'the largest supply chain innovation over the 15-year course of the local food delivery industry', the company announced last week.
South China Morning Post
30-07-2025
- Business
- South China Morning Post
ByteDance's Douyin takes on Alibaba, Meituan and JD.com in China's instant delivery race
ByteDance 's Douyin, the Chinese counterpart of TikTok, is set to heat up competition in China's instant commerce sector against Alibaba Group Holding and Meituan with the merger of its online shopping platform and instant delivery service, according to a report by Chinese tech news website 36Kr on Wednesday. Douyin Supermarket, akin to TikTok Shop, is integrating with Douyin Hourly Delivery, which leverages precise mapping and location services to ensure rapid deliveries to consumers, according to the report. Douyin did not respond to a request for comment on Wednesday. The move aligns with China's evolving e-commerce landscape, where the emphasis is increasingly on so-called instant delivery – typically within minutes – amid growing competition among Meituan, and Post owner Alibaba. Douyin is striving to convert its online popularity into revenue, with e-commerce emerging as a key avenue. Launched in 2023, Douyin Supermarket initially targeted users looking for a seamless e-commerce shopping experience alongside timely delivery. So far, however, only select items were available for next-day delivery, while many products still took several days to arrive, according to 36Kr.
South China Morning Post
02-07-2025
- Business
- South China Morning Post
Alibaba's US$7 billion subsidy deepens China's instant e-commerce war with JD.com, Meituan
Alibaba Group Holding 's instant commerce service announced on Wednesday a substantial subsidy programme totalling 50 billion yuan (US$7 billion) over the next 12 months for both consumers and merchants, intensifying the fierce competition in China's on-demand delivery sector, where and Meituan are also major players. Advertisement Consumers using Taobao's in-app Shangou service, the instant commerce business of Alibaba, will enjoy significant incentives, including cash vouchers, free purchase coupons, and subsidised prices on select items, according to the company. Merchants will benefit as well, receiving support through store launch subsidies, product discounts, delivery subsidies, and reduced or waived commissions. Alibaba owns the South China Morning Post. 'Taobao Shangou leverages technological and business model innovations to build a highly efficient, integrated consumer platform … channeling substantial online traffic to offline businesses,' the company said, while emphasising its strategy as 'anti-involution, pro-consumption'. 'Involution' refers to increasingly intense internal competition that leads to diminishing returns, a phenomenon seen across various parts of Chinese society in recent years that has drawn concerns. food delivery riders in Beijing. Photo: Shutterstock Images Launched late in April, Taobao Shangou – which means 'flash shopping' in Chinese – expanded nationwide in early May, offering rapid delivery for a variety of products, including food, electronics, clothing and flowers. Deliveries are fulfilled by Alibaba's food delivery subsidiary,
Bloomberg
02-07-2025
- Business
- Bloomberg
Alibaba Offers $7 Billion of Subsidies to Defend Turf in China
Alibaba Group Holding Ltd is offering 50 billion yuan ($7 billion) of subsidies for food deliveries and online retail to boost its instant commerce business in China as competition heats up. The massive subsidy will benefit both consumers and merchants over the next 12 months, Alibaba's e-commerce arm Taobao said Wednesday in a statement on its official WeChat account.
South China Morning Post
26-05-2025
- Business
- South China Morning Post
Meituan's first-quarter revenue jumps 18% amid increased competition
Chinese on-demand delivery giant Meituan posted an 18.1 per cent year-on-year surge in revenue for the first quarter, as it seeks to maintain its dominant position on the mainland in the food delivery market amid new competition. Advertisement Meituan's revenue for the three months through March was 86.6 billion yuan (US$12 billion). Net profit reached 10.1 billion yuan, up 87.3 per cent year on year. The Beijing-based firm said in a statement that its instant commerce business 'Instashopping maintained robust growth trajectory, winning increasing consumer recognition and showcasing the immense potential of on-demand retail'. Meituan's results came in above expectations of 85.44 billion yuan in revenue and 8.63 billion yuan in profit, according to analysts polled by Bloomberg, offering a positive start to 2025 as it faces heated competition in the so-called instant commerce market, which in addition to food makes a slew of everyday consumer items available for delivery by courier, often within an hour. Chinese e-commerce giant moved into food delivery in February, after already offering instant delivery of other items. Rival Alibaba Group Holding , owner of the Post, has also doubled down on its instant commerce business, leveraging its food delivery riders and Taobao shopping app. Advertisement Both companies have initiated aggressive campaigns through the use of subsidies and other promotions to grab a slice of the market that has long been dominated by Meituan.
