JD Challenges the Duopoly of the Delivery Market with 0% Commission Policy

On February 11, JD announced the launch of its "Quality Dine-in Restaurant Merchant" recruitment program, allowing merchants who join before May 1, 2025, to enjoy a year of zero commission. This initiative aims to meet consumer demands for food safety and quality delivery. Although JD Delivery still has low market recognition, the 0% commission policy may attract many merchants' attention. The delivery market is currently dominated by Meituan and Ele.me, both of which have mature operations and deeply entrenched consumer habits. JD faces the challenge of breaking this duopoly and entering the market. Additionally, JD must make strategic choices between delivery and instant retail due to limited resources.

(Source: Google Finance)

JD Delivery's supply structure has flaws, as the current platform features mostly casual and high-end dining brands, lacking common, cost-effective chain restaurants. To enhance competitiveness, JD emphasizes recruiting "Quality Dine-in Restaurant Merchants" to improve the overall image of the platform. Industry insiders believe that JD's low commission policy implies the need for substantial subsidies to attract merchants, but negotiations for big brands are complex, and short-term effectiveness may be difficult, requiring JD to prepare for a prolonged battle.

Furthermore, JD recently announced plans to acquire Dada Group at $2.00 per share, further integrating resources. Dada's market performance has been poor, with its market value shrinking by 97% over three years. JD's acquisition may aim to leverage Dada's logistics advantages to strengthen its competitiveness in the instant retail and delivery markets. In summary, the launch of JD Delivery is not only an attempt to enter the delivery market but also part of its overall instant retail strategy, with future developments likely to have a profound impact on the entire market.

What is Dollar-Cost Averaging in Stocks?

Dollar-cost averaging, also known as monthly stock investment, refers to an investment strategy where a fixed amount is used to purchase specific stocks at regular intervals. This approach allows investors to buy shares without needing to purchase a whole unit each time, instead buying a proportionate number of shares based on their set monthly investment amount.

For example, consider Mr. Chen, who wishes to invest in the JD in stages. Using the dollar-cost averaging feature, Mr. Chen invests HKD 1,000 each month, which uSMART uses to purchase shares at market price and deposits them into Mr. Chen's account. This way, Mr. Chen effectively buys around 1.6 shares of JD each week, achieving a low-threshold stock investment.

Advantages of Monthly Investment via uSMART

Choosing the right investment platform is crucial for dollar-cost averaging in stocks. Investing through the uSMART platform offers several significant advantages:

1. Commission-Free Trading

uSMART provides commission-free trading services, meaning investors do not have to pay commission fees for each stock transaction. This is particularly important for investors making regular investments, as accumulated commissions can significantly erode long-term returns. By investing through uSMART, you can allocate more funds to actual investments.

2. No Platform Fees

Besides commission-free trades, uSMART does not charge platform usage fees. This allows investors to enjoy a lower cost structure in long-term investments, further enhancing investment returns. This is especially beneficial for frequent small investments, as the absence of platform fees effectively reduces overall investment costs.

3. No Custody Fees

uSMART also offers the advantage of no custody fees, meaning you do not need to worry about management fees for account funds. This exemption provides investors with greater flexibility to manage liquidity and investment strategies.

4. Convenient Investment Experience

The uSMART platform features a user-friendly interface, allowing investors to easily set up a monthly investment plan and automate their investment process. The platform supports various payment methods, enabling investors to adjust their investment amounts flexibly based on their financial situation and investment goals.

5. Support for Fractional Shares

uSMART allows investors to make fractional share investments, meaning you can invest according to your set monthly amount even if you do not have enough funds to buy a whole share, further lowering the investment threshold and enabling flexible allocation.

How to Purchase Monthly Stocks on uSMART

Step 1: Log into the uSMART HK app and click "Trading" at the bottom right of the page.

Step 2: Click on "Dollar-Cost Averaging" in the second column of the page and select "All Dollar-Cost Averaging Stocks."

Step 3: Choose your desired dollar-cost averaging stock, select the investment amount, deduction method, and deduction date, then create your investment plan.

Once confirmed, the investment plan will take effect in real time.

(SOURCE: uSMART HK)