Groceries worth RMB 25.3 billion (USD 3.9 billion) were ordered on the JD-Daojia platform and delivered home in 2020, an increase of 107% year-on-year (YoY), according to the earnings release of its owner Dada Group (Nasdaq: DADA) on Tuesday.
JD-Daojia continues to be China’s largest local on-demand retail platform, increasing its market share to 25%, founder and CEO Philip Kuai said on the earnings call, citing market research firm iResearch.
While the company did not disclose a quarterly breakdown of GMV, Kuai said during the earnings call that its fast growth in the fourth quarter was driven by factors including expansion into another 200 cities and counties and diversified product offerings covering cosmetics and personal care categories.
Sales in lower-tier cities increased by 150% YoY, he mentioned, adding that the platform is now available in 1,400 cities and counties.
For the full year of 2020 Dada generated RMB 2.3 billion (USD 350 million) in revenue from JD-Daojia, up 109% from the year before. The growth was mainly due to the higher GMV, which was driven by increases in average order size and the number of active consumers, which reached 41.3 million, compared with 24.4 million in 2019.
The company earns revenue by offering intra-city delivery services to JD-Daojia retailers’ customers, charging commission fees from retailers for using JD-Daojia platform, providing online marketing services to brand owners, and packaging goods for retailers on JD-Daojia, according to the company’s IPO prospectus in August 2020.
In addition, the company collected RMB 3.4 billion (USD 520 million) from Dada Now, its intra-city delivery service, up 72% YoY, thanks to an increases in order volume of services to logistics companies and intra-city delivery service to chain merchants.
Dada, however, still registered RMB 1.7 billion (USD 260 million) in net losses in 2020, slightly above 2019’s RMB 1.67 billion.
