JD.com has launched an “instant delivery” retailing service that aims to deliver goods in under an hour to consumers within a three kilometer radius.
The service, coined “Shop Now” has launched in partnership with its logistics and delivery platform Dada Group in a bid to increase the market share in a busy market dominated by rivals including Alibaba and Tencent.
The “Shop Now” service is designed to deliver products in under an hour from physical stores within a radius of three kilometers.
The ecommerce giant’s new venture differs from the traditional service that JD.com usually offers, which sells a wider range of products and delivers over a longer distance.
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“Now, we have made another major stride forward in pioneering a new e-commerce model which consolidates all the capabilities of one-hour shopping within the JD.com eco-system and becomes the first to launch the dual homepages on App incorporating both B2C and on-demand retail and delivery,” JD.com vice president Huijian He said.
The instant retail model has become widely adopted by retailers and ecommerce brands since the breakout of the pandemic, especially in the grocery sector.
The market is expected to reach $139.8 billion by the end of 2024, according to data from iResearch.
In comparison to its rival Alibaba, which set up its instant retail service Hema in 2015, JD.com is slow to the market.
Alibaba hopes to open Hema branches in every Chinese city with over one million residents by 2031.