China’s e-commerce giants, JD.com and Alibaba, are intensifying their competition by venturing into the rapidly growing “instant retail” sector, aiming to deliver products to consumers within 30 to 60 minutes. This strategic move comes as both companies seek new avenues for growth amid a slowing economy and high market saturation.
To attract customers, JD.com and Alibaba have each committed 10 billion yuan (approximately $1.38 billion) in subsidies. JD.com launched JD Takeaway in February, while Alibaba expanded its Taobao platform to include instant shopping, supported by its food delivery service, Ele.me.
Both companies are leveraging their extensive logistics networks to fulfill orders swiftly. JD.com introduced its “211 program,” offering same-day delivery for orders placed before 11 AM and next-day delivery for orders placed before 11 PM. Meanwhile, Alibaba’s Taobao platform added a one-hour delivery option, accessible directly from its homepage, covering a wide range of daily necessities.
The competition has prompted regulatory attention. Chinese market regulators convened with major food delivery companies, including JD.com, Meituan, and Alibaba’s Ele.me, to address issues of competition in the sector. Authorities emphasized the need for these companies to comply with relevant laws and regulations, encouraging them to engage in fair competition and protect the rights of consumers and delivery workers.
This race for ultra-fast delivery is reshaping China’s e-commerce landscape, with both JD.com and Alibaba investing heavily to meet the growing consumer demand for speed and convenience.
