China’s instant retail sector is entering a new phase of intensified rivalry, with food delivery emerging as the central battleground between JD.com and Meituan.
A new report from MoonFox Data outlines how both tech giants are leveraging rapid delivery services to grow user bases, expand market reach, and drive engagement in 2025.
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Fierce competition reshapes instant retail landscape
The report identifies instant retail — defined as the rapid delivery of physical goods from local retailers to consumers — as a fast-growing segment of the broader e-commerce market. It includes time-sensitive services like food delivery, hourly purchase, and fresh produce logistics.
In 2024, China’s instant retail market was valued at approximately RMB 780 billion, just 6% of the total online retail of physical goods. Despite this modest share, growth is accelerating. By 2030, the sector is projected to surpass RMB 2 trillion, according to data compiled by MoonFox Research Institute.
Both JD.com and Meituan have positioned food delivery at the centre of their instant retail strategies. Meituan officially launched its “Flash Sale” brand in April 2025 after years of developing related infrastructure.
JD.com, meanwhile, consolidated its delivery services under the “JD Instant Delivery” banner in 2024 and entered the food delivery market in February 2025.
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Traditional e-commerce has shown signs of saturation, with flagship promotional events like “Double 11” and “618” losing momentum. JD.com and others have turned to instant retail — characterised by higher purchase frequency and faster conversion — as a means to revitalise growth.
JD.com CEO Xu Ran stated that food delivery offers new opportunities to increase daily active users and drive repeat transactions. Founder Liu Qiangdong has also advocated for sector reform, criticising high platform commissions and calling for better welfare for couriers. JD’s new initiatives include a “late delivery, free meal” policy and plans to recruit 100,000 full-time couriers.
Meituan, despite its early dominance, faces renewed pressure. JD Food Delivery reached over 10 million daily orders by April 22, rapidly narrowing the volume gap. Meituan has responded with commission reductions and expanded subsidies for merchants, especially in lower-tier cities.
JD.com’s aggressive push sparks public debate and user shift
Since launching food delivery services, JD.com has engaged in a high-profile campaign to attract users, merchants, and couriers. Public statements, platform subsidies, and courier-friendly policies have made JD a trending topic on Chinese social media.
Daily new users of the JD app surpassed Meituan’s from mid-April, according to MoonFox iApp data.
Couriers appear to be responding. The DADA Instant Delivery Courier app — a JD partner — saw a surge in new users, jumping from 47,000 in March to over 181,000 in April. Merchants have also begun joining JD’s platform in significant numbers.
However, JD has faced operational challenges, including early-stage technical glitches and inefficient courier systems. Despite these issues, the company’s investment in infrastructure, self-operated warehouses, and digital services has enabled rapid rollout across over 2,300 cities and counties.
Meanwhile, Meituan maintains a network of more than 30,000 flash warehouses, positioning itself as a dominant player in the delivery of daily retail goods. The company continues to report high gross margins and revenue growth in its core local services.
As the battle for instant retail supremacy intensifies, the outcome may depend not only on platform reach and logistics, but on user experience, delivery reliability, and the ability to maintain momentum in a fast-evolving digital market.
