JD.com invests US$800mil in last-mile delivery service to fill a gap in its community group buying strategy

JD.com founder Richard Liu has created a community group buying unit to compete in what has become a key battlefield for China’s Internet giants. The rapid growth of community group buying has seen it come under intense government scrutiny as Beijing attempts to rein in the influence of Big Tech. — SCMP

JD.com will invest US$800mil (RM3.30bil) in Dada Nexus, the operator of rapid delivery service JD Daojia, in the latest move by the Chinese e-commerce giant to establish a stronghold in the burgeoning community group buying sector ahead of a public listing of its JD Logistics unit in Hong Kong.

JD.com founder Richard Liu Qiangdong is leading a newly-established community group buying business, according to Chinese media, and this latest move shows the strategic importance of a sector that has become a key battlefield for Chinese Internet giants from Meituan to Pinduoduo. Alibaba Group Holding, which owns the South China Morning Post, has also embraced the business model that allows residents in a community to buy groceries and other daily essentials in bulk at prices cheaper than what they would pay individually.