Lates News

CITIC Securities research report indicates that recently, the significant increase in order volume by JD Daojia has sparked discussions. For the food delivery industry, competition is expected to stimulate market vitality and drive major players to strengthen ecological construction, which is of positive value to the industry's development. Looking at the trend of competition, with the expansion of order volume scale, competition will present a comprehensive and multi-factor situation. Reviewing the history of positive collisions in the food delivery market, subsidies have had a significant short-term effect on increasing order volume, but they are not the decisive factor determining the outcome of competition. More core systemic variables such as delivery efficiency, merchant supply, user repurchase, and frequency of ordering are crucial. With intensified competition, the capital consumption borne by all parties may be difficult to avoid, which may cause disturbances to market sentiment in the short term. However, from a relatively long-term perspective, we predict that the industry's competitive landscape will tend to stabilize, and the platform's value is expected to be released in the long term for the healthy development of the market ecosystem.