JD Takeaway plans to offer "comprehensive support for merchants, aiming to promote the healthy and sustainable development of the food delivery industry."
ADR shares of JD.com ($JD) were up 0.3% in after hours trading on Tuesday after the e-commerce reportedly announced it was expanding into food delivery business in China, but retail sentiment appeared cautious.
According to a Reuters report, JD.com has begun onboarding catering merchants for its new platform, JD Takeaway. The company posted on its Weixin account, with the message, "Join us now, zero commissions all year round!" The new platform also announced commission-free services until the end of 2025 for those registering before May 1.
JD Takeaway plans to offer "comprehensive support for merchants, aiming to promote the healthy and sustainable development of the food delivery industry," said the report.
JD Takeaway will enter the highly competitive food delivery sector that has big names such as Meituan and Alibaba’s (BABA) Eleme.
Sentiment on Stocktwits appeared cautiously bullish, with some commenters hoping to buy into the dip of recent tariff-fueled volatility in Chinese stocks.
JD was recently put on a "positive catalyst watch” by JP Morgan amid broader optimism among Chinese firms on the back of better-than-expected economic data.
JP Morgan maintains an ‘Overweight’ rating with a $50 price target and expects JD's revenue growth to see a better-than-expected boost from trade-in policies, with more resilient margins thanks to investment discipline, Fly.com reported.
JP Morgan forecasts JD’s Q4 revenue growth to be about 9.5% year-over-year, beating consensus estimates by 3%, and adjusted net profit projected to grow 13% compared to last year, Investing.com reported.
JD.com stock is up 14.7% year-to-date.
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