Dada Group revenue surges on delivery demand
Shanghai-based on-demand retail delivery site Dada Group reported an 85.5 percent surge in third-quarter revenue thanks to booming demand.
Total revenue was 1.3 billion yuan (US$191 million) between July and September, and the number of orders handled by its crowd-sourcing delivery service Dada Now for the 12 months as of the end of September reached 1 billion compared with 635.5 million in the year-earlier period.
Net losses stood at 434 million yuan with rising operation cost and marketing activities. Quarterly losses shrank from 475 million yuan in the same period last year.
Its online-to-offline grocery and shopping service JD Daojia (JDDJ) saw gross merchandise volume more than double to 21.3 billion yuan and active user base grew 77 percent.
The JD and Walmart-backed group which completed its initial public offering in June this year expects JDDJ revenue to grow by 100 percent year over year in the second half, according to Philip Kuai, chairman and chief executive officer of Dada Group.
“We see continued market share rises for our crowd-sourcing delivery service and online retailing service, and we’re deepening collaboration with key supermarket chain operators like Walmart and Yonghui especially in lower-tier cities,” he added.
An increasing number of promotional activities launched by brand owners also contributed to the higher income for JDDJ.
It also expanded to cover food takeaways as competition for delivery service intensifies between rivals including Alibaba-backed Ele.me and Tencent-backed Meituan.