DADA (NASDAQ:DADA) Group, a Lower-Tier city focused delivery service, brought in strong Net Revenues of 1.7 Billion Yuan (US $265 million) for the quarter ending March 31st. DADA is 51% owned by JD.com after a recent top up investment of US$ 800 million in March.
DADA and JD Daojia’s merged entity DADA-JD Daojia (JDDJ) is providing grocery deivery services in 1,500 cities, districts, and counties across lower tier markets.
So what does this mean for JD.com?
It is great that JD is investing to strengthen their logistics reach across the country. In particular, the investment into a service that focuses on a customer segment is more expedient than attempting to duplicate the rivalries. It is a big positive tick for me.
Protocol has an interesting story of a delivery rider in China, who despite the challenging rider lifestyle, still enjoys it for other reasons.
“Sometimes I am so busy I skip breakfast and even lunch. It’s a tough job, but for experienced riders, it’s actually not that hard. And it pays well. I can easily earn 400 yuan ($63) on any given day. … Before moving to Xiamen, I worked at my family’s hardware shop. … Delivering food on my electric bike is a much easier job compared to manual factory work.”