Beijing-headquartered e-commerce giant JD.com Inc (NASDAQ:JD) is mulling a possible foray into the food delivery business, posing an intense competition for its Chinese peers Meituan (OTC:MPNGF) and Alibaba Group Holding Ltd (NYSE:BABA).
What Happened: JD Retail CEO Xin Lijun, in an interview with Bloomberg TV, said the company has “considered and explored” launching an on-demand food delivery service.
“As for when we will start doing it, it will depend on our capacity and when we can build up a talent team,” Lijun added.
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JD’s entry into the food delivery service will further stir up the competition in the segment that already has the country’s two most formidable tech companies fight for their share. Meituan and Alibaba have long dominated the segment in China by burning through large sums of cash to cultivate an army of delivery drivers.
Xin did not provide more details about JD’s food delivery plan but told the publication that its logistics affiliate Dada Nexus Ltd (NASDAQ:DADA), has “strong capability” in same-city delivery.
Price Action: According to data from Benzinga Pro, JD.Com shares closed 3.59% lower on Thursday in New York. In Hong Kong, the stock gained 4.79% on Friday.
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