JD.com takes control of Dada

Date : 24 March 2021

Jiong-Jiong Yu

Senior Retail Analyst

JD.com announced on 22 March that it is investing US$800m in Dada Neux, the mother company of on-demand grocery delivery platform JD Daojia and on-demand delivery platform Dada Now.

JD.com will effectively take control of delivery platform Dada

Once the deal goes through, JD.com will own 51% of Dada.

JD merged its online-to-offline unit, JD Daojia, with Dada in 2016. Dada-JD Daojia then in 2018 raised US$500 million from Walmart and JD.

Lei Xu, CEO of its JD Retail business, said, "Our increased investment will facilitate both sides to promote the expansion of on-demand retail and delivery, as well as omnichannel collaboration."

"This will help us further diversify our retail services and enable our partners, especially real economy enterprises, to continue to optimise cost, efficiency and experience. It will help accelerate their digital transformation and deliver faster, better and richer services for consumers," he added.

A move to strengthen its position in logistics

The investment comes at a time when JD.com is spinning off its logistics business, JD Logistics, which is set to sell its shares through an initial public offering (IPO) at the Hong Kong stock exchange.

The pandemic has heightened the need for, and the value of, logistics operations. JD.com is moving quickly to expand and consolidate its leadership in this area.