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JD.com renews on-demand delivery fight with US$2.9 billion in grocery subsidies

JD.com says the subsidies will make the ‘Billion-Yuan Supermarket’ its largest subsidised product category, surpassing electronics

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The JD.com logo is seen outside its sorting centre building in Beijing, November 11, 2025. Photo: Reuters
Ben Jiangin Beijing

JD.com is making a renewed push into its online supermarket business with a subsidy programme worth more than 20 billion yuan (US$2.9 billion) over three years, a move aimed at defending its position in China’s e-commerce and on-demand grocery sectors.

In a statement on Thursday, JD.com said the subsidy would cover products on a dedicated channel called “Billion-Yuan Supermarket”, under its JD Supermarket service. The aim was to help vendors generate an additional 200 billion yuan in sales over the next three years.

The move underscored a “strong defensive” strategy from JD.com directed at rivals such as Meituan, Pinduoduo and Alibaba Group Holding as they expand into each other’s territory, according to Li Chengdong, founder and chief analyst at e-commerce consultancy Dolphin Think Tank.

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Alibaba owns the South China Morning Post.

After Alibaba bolstered its efforts in the online food delivery market, JD.com expanded into the sector with a 10 billion yuan subsidy programme last year. Meanwhile, Meituan, which dominates the market, was making a bigger push into the country’s growing on-demand grocery market.
JD.com said the subsidy would cover products on its Billion-Yuan Supermarket channel. Photo: Handout
JD.com said the subsidy would cover products on its Billion-Yuan Supermarket channel. Photo: Handout

“JD.com’s push into online food delivery costs them some losses, so they might as well subsidise their grocery business,” Li said.

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