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Following JD.com's entry into the food delivery market with the slogan "Providing full-time delivery riders with five social insurances and one housing fund" and "Zero commission for joining" on a certain date, news came on another date that JD.com is testing the waters in the ride-hailing market. On one side, JD.com is intensifying its efforts in food delivery and ride-hailing services, while on the other side, Meituan and Ele.me, which originated from food delivery platforms, continue to expand the boundaries of food delivery services and share in the instant retail business. The frequent involvement of giants and their intensified layout behind the scenes reflect the enormous potential of the local life service consumption market.

The traffic portal is of great value

The local lifestyle services market encompasses various segments such as food delivery, leisure and entertainment, and travel. For internet giants, it is not only a massive traffic gateway but also a key to achieving diversified business layouts and enhancing overall competitiveness. According to iResearch, the domestic local lifestyle market is projected to grow to trillion yuan by [year], with a compound annual growth rate (CAGR) of .%. Additionally, as scenarios like online dining and group buying expand, the online penetration rate of local lifestyle services is expected to rise to .% by [year].

Zhi Peiyuan, Vice President of the Listed Companies Committee of the China Investment Association, believes that the competition among internet giants for local life services stems from the close proximity of these services to users' daily lives, offering significant value as traffic entry points. Providing local life services can increase user frequency, extend usage duration, accumulate user data, and uncover more commercial value. Moreover, local life services cover various fields such as dining, retail, and entertainment, with a vast market size and considerable profit margins. Betting on local life services can, in the short term, attract new users, enhance user activity, and strengthen platform stickiness for internet platforms.

In fact, as early as last year, JD.com expressed its intention to enter the food delivery industry. This year, JD launched a new "Instant Delivery" channel, featuring an entry point for food delivery services, with coffee, milk tea, and branded chain restaurants gradually being added. Recently, JD Food Delivery announced the recruitment of "quality dine-in restaurants." JD stated that to better meet consumers' demand for "food safety and high-quality delivery," the recruitment is exclusively open to "quality dine-in restaurants." JD Food Delivery will provide comprehensive support to participating merchants, helping them benefit and jointly promoting the healthy and sustainable development of the food delivery industry. Merchants who join before the end of the month will enjoy a full year of commission-free service.

Many are optimistic about the takeout market. In recent years, internet platforms like Douyin have launched corresponding services, and even traditional beverage giant Wahaha announced the initiation of its "Wahaha Home Delivery" plan, officially entering the food delivery business. From the perspective of Chen Liteng, a digital life analyst at the E-Commerce Research Center of the Internet Economy Society, JD Daojia had already entered the local life services market with its model years ago, offering consumers instant delivery services for a variety of goods. This move into the food delivery sector can be seen as "going with the flow." JD.com boasts a well-established logistics and distribution system along with extensive experience in instant retail, both of which provide strong support for its food delivery business.

年，京东试水本地生活服务，推出“京东到家”，把超市便利、生鲜果蔬、医药健康等作为核心服务内容。与此同时，京东集团持续投资达达集团。年月，达达集团全面接入京东小时购系统，实现全国个仓储网点与万零售终端的数据贯通。本地即时配送平台达达成为京东发展外卖业务的关键。

补全本地生活“拼图”

“目前京东外卖选择主打品质外卖市场，与美团、饿了么等平台形成差异化竞争，这一策略有助于京东在外卖市场中吸引注重品质的消费者。值得注意的是，美团、饿了么占据了大部分市场份额，尽管有如京东外卖、抖音、快手等不断涌入，但对市场格局的改变尚不明显。”陈礼腾表示。

Although food delivery may seem like a low-barrier business, it actually faces multiple challenges such as infrastructure, fulfillment capabilities, and market competition, leading many platforms to falter. Previously, the food delivery market had formed a tripartite balance among Meituan, Ele.me, and Baidu Takeout. However, as capital competition intensified, Baidu Takeout gradually lost its competitiveness due to relatively insufficient resource investment and became a wholly-owned subsidiary of Ele.me. Subsequently, Ele.me was acquired by Alibaba, becoming a key force in its new retail strategy.

Douyin's food delivery service also officially launched in the same year, but after a series of changes, its original "group buying and delivery" business shifted to the "casual group" model. This adjustment was seen as a "strategic retreat" from the food delivery sector by Douyin. Additionally, platforms like Didi Chuxing have attempted to enter the food delivery market, but the dominant duopoly of Meituan and Ele.me remains unshaken.

In Chen Liteng's view, if JD.com wants to disrupt the current food delivery market landscape, it needs to focus on expanding merchant resources, optimizing service experiences, and implementing certain subsidy policies, which is a long-term process. Additionally, JD.com's "zero commission" policy for food delivery may attract more merchants in the short term, but it could merely be an initial incentive tactic. "In the long run, JD.com must provide continuous value to its merchants, such as supply chain support and data services, to retain them and solidify its market position," Chen Liteng said.

Food delivery is the core of the local life business, and the competition among internet giants for this market reflects the intense battle in the local life sector. At the beginning of the year, Douyin launched a group buying and delivery service for some merchants, and WeChat tested a quick delivery mini-program for stores. In the middle of the year, Kuaishou added a home delivery function to its group buying package service guarantee. Even Xiaohongshu is actively expanding its group buying business in cities.

In response, leading platforms in the food delivery sector are vigorously defending against external challenges to solidify their strongholds. Meituan has played the "retail + technology" card, investing billions in technology research and development throughout the year, reaching a historic high. The proportion of R&D investment to revenue ranks among the top private enterprises nationwide, with R&D investment also reaching billions in the first quarter of the year. Within the overall urban last-mile delivery system, Meituan has formed an integrated ground-air delivery system through multiple delivery forces such as riders, autonomous delivery vehicles, and delivery drones. In terms of scenarios, its drone routes have already been implemented in scenic areas, office buildings, residential areas, and industrial parks.

Ele.me officially announced last year that it would develop an instant retail model tailored to its own characteristics and launched the "Near-field Brand Official Flagship Store." The company plans to open ten thousand official flagship stores in the coming years, where brand merchants will enjoy greater operational autonomy and control.

For JD.com, as user growth slows, it needs to expand into high-frequency consumption scenarios such as food delivery and ride-hailing to increase usage frequency and user retention. Chen Liteng believes that from the perspective of its own development, JD.com has accelerated its expansion into the local lifestyle business in recent years, with food delivery and ride-hailing being key pieces to complete its local lifestyle "puzzle." From the perspective of external competition, the retail e-commerce market remains fiercely contested. JD.com competes with Tmall and Pinduoduo in the traditional e-commerce sector, faces challenges from Douyin and Kuaishou in the live-streaming e-commerce arena, and contends with rivals like Meituan and Ele.me in the instant retail sector. By aggressively investing in the local lifestyle market, JD.com adopts a defensive strategy to mitigate the impact of other platforms on its retail business.