JD.com's food delivery service captured 15% of the market share in one year, with net profit declining nearly 30% in the first three quarters of the previous year.

On February 28, JD.com (9618.HK) announced various data celebrating the one-year anniversary of JD Waimai’s operations.

JD stated that over the past year, they have strictly reviewed merchant qualifications, launched the “Dine-In” label first, implemented dish box disinfection and heating, and introduced “Qixian Small Kitchen,” which focuses on fresh stir-fry, kitchen live streaming, and publicizing major ingredients. In this year, they rejected 1 million “black” takeout stores, processed over 240 million orders, and captured more than 15% of the takeout market share. JD aims for JD Waimai to reach a 30% market share by 2026.

Qixian Small Kitchen is a key project launched by JD Waimai last year. JD said that this innovative industry model has driven merchant growth. Last year, they introduced “0 commission,” and in the future, they will maintain a low commission policy of no more than 5% long-term, encouraging merchants to invest more in improving dishes. Each Qixian Small Kitchen has averaged over 500 orders per day three months after opening, also boosting traffic and growth in surrounding restaurants.

JD plans to accelerate the expansion of Qixian Small Kitchen by 2026, fully extending to in-store pickup and group buying services. By the end of this year, coverage will include all first- and second-tier cities nationwide. The in-store group buying service will soon be launched nationwide, initially covering 1 million quality restaurants.

Additionally, JD released data on delivery riders. JD said that over the past year, 150,000 full-time riders joined JD, and they plan to invest 22 billion yuan over the next five years to build 150,000 “Brother Homes” (rider hubs).

In February last year, JD made a high-profile entry into the takeout market, offering “zero commission for merchants” and full social insurance and housing fund contributions for riders, quickly attracting merchants and riders. In July last year, JD officially launched Qixian Small Kitchen, which media described as JD’s own cooking mode.

However, JD’s entry prompted two other major takeout giants, Meituan (3690.HK) and Taobao, to follow suit, triggering a subsidy war among the three platforms.

According to the latest third-quarter financial report, sales expenses for all three platforms surged, mostly spent on the takeout battle. Meituan’s marketing expenses in Q3 reached 34.3 billion yuan, a 90.9% increase year-over-year; Alibaba (9988.HK) spent 66.496 billion yuan, up 104.8%; JD’s marketing expenses also increased to 21.1 billion yuan, up 110.5% year-over-year.

The takeout war severely impacted the performance of the three platforms. In the most intense third quarter, Meituan’s adjusted net loss was 16 billion yuan, the largest quarterly loss since its IPO. Alibaba’s net profit attributable to ordinary shareholders for Q2 of fiscal year 2026 (July-September) was 20.99 billion yuan, down 52% year-over-year; operating profit was 5.365 billion yuan, down 85%. JD’s net profit attributable to ordinary shareholders was 5.3 billion yuan, down 55%; adjusted net profit was 5.8 billion yuan, down 56%.

In the first three quarters of 2025, Meituan lost 8.21 billion yuan, turning from profit to loss compared to last year; JD’s net profit for the same period was 22.34 billion yuan, a 29.08% decrease year-over-year; Alibaba’s revenue was 74.97 billion yuan, up 9.5%.

However, the fierce takeout competition has attracted regulatory attention. In May last year, the Market Supervision Bureau held meetings with JD, Meituan, Taobao, and other platforms. In August, the three platforms issued statements emphasizing a shift from “price competition” to “quality” and “service” comparisons, promoting balanced development of takeout and dine-in, building a rational and sustainable business environment, and improving rider rights and protections.