Latest news with #RichardLiu
CNBC
11-07-2025
- Business
- CNBC
China's 'instant commerce' price war sees $0.30 drinks and billions in subsidies doled out
In China's fiercely competitive market, the latest price war is playing out in the growing "instant commerce" sector, where companies are launching massive subsidies and other incentives to get consumers to spend. The 'instant commerce' sector is backed by massive networks of scooter drivers that quickly transport everything from food and drink to fast fashion and gadgets. The space is mostly occupied by three main players, including the established e-commerce heavyweights and Alibaba, as well as delivery platform Meituan, which has historically focused heavily on food delivery. Competition between these companies has intensified this year, with all three expanding their delivery networks and pledging billions in subsidies to merchants and consumers. The result — insanely fast and cheap offers. Perusing through delivery platform on Friday, CNBC found coffee as cheap as 10.9 yuan, or $1.50, including delivery fees. Meituan was offering a 13 yuan set of steamed buns and a 26.8 yuan McDonald's breakfast set. However, despite the benefits for Chinese consumers, the price war has also weighed heavily on investors and the earnings outlook. Meituan and for example, have seen their shares fall by about 22% and 10%, respectively, this year, according to LSEG data. China's e-commerce players have consistently competed on delivery times, supported by the country's large labor force and gig economy. By building out a strong logistics network, JD had set a standard in the market for same-day or next-day delivery of packages, pressuring competitors like Alibaba. However, China's latest 'instant commerce' battle appeared to start after move into the takeout dining market in February, entering a space dominated by Meituan, the market leader, and Alibaba's food delivery platform Then, in April, Meitaun launched its own challenge to with a new 24/7 "flash shopping" platform that included categories like groceries, alcohol, and electronics and promised deliveries within 30 minutes. Tensions grew as the companies engaged in direct competition. Eventually, both companies accused each other of using anti-competitive practices to block riders from accepting orders on rival platforms. It was around that time when JD began hiring more full-time drivers, and founder Richard Liu was photographed delivering food orders in Beijing in a viral publicity stunt. That month also saw announce a first round of subsidies worth 10 billion yuan, which went towards a food delivery discount program. Subsidies and massive discounts are commonplace in China's competitive tech sector, and a cause for concern for Beijing. China's top market regulator summoned Meituan, and Alibaba's in May, urging them to follow the law and compete fairly. Retail groups also voiced concerns about subsidy program and the knock-on effects of plummeting prices. However, the pushback had little effect on slowing the price war. On Tuesday, announced yet another 10 billion-yuan investment under its "Double Hundred Plan," intended to provide targeted support to merchants on the platform. It came after Alibaba's Taobao Instant Commerce announced on Saturday a subsidy program valued at 50 billion yuan (about $7 billion), to be distributed over the next year. It added that it had reached 200 million orders per day shortly after. The same day, discounts and coupons offered on Meituan had seen prices of a cup of coffee drop to as low as 2 yuan ($0.28), according to local media. As a result, the company said that it received a record 120 million orders that Saturday — so much that it suffered a temporary breakdown of its servers in certain areas. While all the companies have boasted about increases in their instant commerce user bases in recent months, it remains unclear how much the price war will impact their earnings. Meituan reported that its profits for the first quarter of 2025 were 10.2 billion yuan, up about 63% year over year. However, it warned that the following quarter would likely be impacted by increased competition in instant retail. In May, reported that its operating profit rose by 31.4% year over year to 11.7 billion yuan in the first quarter of 2025. However, economists polled by LSEG expect second-quarter profits to fall on both a yearly and quarterly basis. JD's push into food delivery may have generated a loss of more than 10 billion yuan in the second quarter, according to Nomura's analysis published Thursday. The analysts estimate JD has gained about 10% of the instant delivery market with 20 million orders a day. Looking ahead, "we think JD may have to re-examine its ambition," the analysts said. They pointed out that in light of Alibaba's ramped-up spending on subsidies, JD might have to burn through all the profits generated by its core retail business — for several quarters — if it wants to compete with the two market incumbents.
Coin Geek
04-07-2025
- Business
- Coin Geek
JD.com forays into stablecoins as South Korea voices concern
Getting your Trinity Audio player ready... (NASDAQ: JD), China's largest retailer by revenue, is venturing into the stablecoin arena, and it has international ambition. In a recent media briefing, chairman and founder Richard Liu Qiangdong stated that he believes stablecoins will dominate the cross-border transfer market, and his company wants a piece of the pie. ' intends to secure stablecoin licenses across key currency markets globally…to reduce cross-border transaction costs by 90 per cent and improve the efficiency to within ten seconds,' he stated, as reported by the South China Morning Post. Liu pointed out that today's cross-border payments, which rely on SWIFT, remain slow and expensive, owing to the inefficiency of the banking system and the high number of intermediaries. A SWIFT transfer can take anywhere from a day to five, depending on the corridor and currencies. In contrast, a stablecoin transaction takes seconds and costs a fraction of the legacy fees. 'We hope that JD stablecoin will become a universal payment method worldwide,' Liu says. Liu's endorsement comes after months of stablecoin efforts by Hong Kong-based subsidiary, JINGDONG Coinlink Technology. The firm is part of the city's stablecoin sandbox, which the Hong Kong Monetary Authority (HKMA) launched earlier this year. In a recent interview, Coinlink CEO Liu Peng revealed that the company completed the second phase of its stablecoin pilot in Hong Kong a month ago. While the pilot targeted cross-border settlements, it also experimented with retail payments and investments. Peng added that the company expects to acquire a license in Hong Kong under the city's new stablecoin regime later this year and launch its new HKD-backed stablecoin over the next six months. joins dozens of other global firms targeting stablecoin launches over the next few years as the industry becomes one of the most lucrative in the sector. Circle's recent initial public offering (IPO) (and the subsequent 750% spike in stock value) proved that the market is ready for a stablecoin implosion, and other companies are scrambling for a share of the spoils. In Asia, Alibaba (NASDAQ: BABAF), which owns biggest rival, Tmall, has announced similar plans and is also pursuing a Hong Kong license. Beyond Asia, giants like Walmart (NASDAQ: WMT), Amazon (NASDAQ: AMZN), and JPMorgan (NASDAQ: JPM) are also working on their own stablecoins. Stablecoins have been on the radar of these giants for years. However, according to market experts, they had refrained from the sector as it was largely unregulated. 'The infrastructure has been ready, but it lacked application scenarios. The reason institutions were previously hesitant to use stablecoins was that these were not compliant,' says OKG Research's senior analyst Jason Jiang. Not anymore. The United States is edging closer to welcoming the GENIUS Act; Singapore has finalized its stablecoin framework; and Hong Kong's Stablecoin Ordinance takes effect in August. Bo Tang, a director at Hong Kong's University of Science and Technology, adds that these regulations are laying the foundation for a new financial order. 'A brand-new payment ecosystem built on stablecoins will emerge.' Bank of Korea: Stablecoins could threaten financial stability Elsewhere, the Bank of Korea (BOK) says it's not against won-backed stablecoins, but it's concerned about their impact on financial stability and foreign exchange. Governor Rhee Chang-yong said that won-backed stablecoins could solve the rise of USD alternatives, which dominate the market. According to the Atlantic Council, USD stablecoins account for 98% of daily transacted value. However, the central bank is concerned that Koreans could use the won stablecoins to acquire dollar alternatives, which 'in turn could increase demand for dollar stablecoin and make it difficult for us to manage forex,' he stated. The governor's concerns come as the government, led by the new president, Lee Jae-myung, pushes for stablecoin adoption. Lee campaigned on a pro-digital asset stance, pledging to make South Korea a Bitcoin hub, and stablecoins are central to this agenda. In a separate media briefing, Deputy Governor Ryoo Sangdai proposed a gradual rollout that only allows regulated financial institutions to issue stablecoins initially. 'It would be desirable to initially allow stablecoin issuance primarily through banks, which are subject to higher levels of financial regulation, and gradually expand it to the non-banking sector,' he stated, as reported by Yonhap News. This proposal would favor local banks, and some are already bracing to venture into the sector. The country's largest lender, KB Kookmin, filed 17 trademark applications this week, all related to stablecoins. KakaoPay, which operates the leading mobile payments service, has also filed similar trademark applications. Watch: Richard Baker on engineering a smarter financial world with blockchain title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
Yahoo
25-06-2025
- Business
- Yahoo
JD.com (JD) Launches Zero-Commission Hotel Program, Disrupting Travel Sector
Inc. (NASDAQ:JD) is one of the 10 best AI stocks to buy according to billionaire David Tepper. On June 18, issued an announcement that sent ripples through China's online travel and services industry. In the announcement, the company said that hotel merchants joining its JD Hotel PLUS Membership Program will enjoy up to three years of zero commission. A close-up of a customer using the company's e-commerce platform whilst shopping online. The open letter to hotel merchants was way of launching a deeper foray into China's hotel and travel industry. stated it will focus on providing supply-chain services to lower operational costs and enhance guest experiences. The company's founder, Richard Liu, has emphasized that the core logic is 'supply chain optimization' to compress backend costs. This announcement dealt a blow to major players in the sector. For instance, Group, China's leading online travel agency, saw its shares plunge approximately 5% in Hong Kong trading. Similarly, Meituan, which offers food delivery and travel-booking services, saw its stock slide nearly 4%. Other online travel platforms like Tongcheng Travel also experienced significant drops, with some falling over 9%. Inc. (NASDAQ:JD) is a Chinese e-commerce and supply chain technology company. It operates through segments like JD Retail, JD Logistics, JD Health, JD Industrials, and JD Technology. The company sells various products, including electronics, home appliances, groceries, apparel, and healthcare items, through its online and offline platforms. JD also provides logistics and cloud- and AI-driven supply chain services. While we acknowledge the potential of JD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Goldman Sachs China Stocks: 10 Stocks to Buy and 10 Undervalued Blue Chip Stocks Analysts Recommend for Smart Investing. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-06-2025
- Business
- Yahoo
JD.com Founder Richard Liu Unveils Bold Turnaround Plan, Eyes 2026 European Launch
Inc. (NASDAQ:JD) is one of the most active stocks to buy according to analysts. On June 18, Bloomberg reported that founder Richard Liu unveiled a bold turnaround plan for the online retailer, which he described as having experienced its darkest period in the past half-decade. During a rare news conference at JD's Beijing headquarters on June 17, Liu, aged 52, admitted that the company lost its way since a 2020 government crackdown, allowing rivals like PDD Holdings Inc. (NASDAQ:PDD) to surge ahead. He characterized the past 5 years as lost and lacking innovation and progress, deeming them the most unremarkable and least valuable five years in his entrepreneurial history. Liu's turnaround strategy focuses on using JD's extensive logistics network to expand into new markets, including food delivery and travel. In March, JD made an aggressive entry into China's over $80 billion food delivery market, a domain previously dominated by Meituan (OTC:MPNGF) and Alibaba Group Holding Limited's (NYSE:BABA) A wide and imposing view of a supply chain distribution center, illustrating the company's technology capabilities. Beyond food delivery, JD also plans to challenge Meituan in the hotel and flight booking market by offering a 3 year membership program that waives commissions for hotels. Globally, JD aims to launch its e-commerce platform in Europe in 2026, having already spent 3 years building the necessary infrastructure there. Inc. (NASDAQ:JD) operates as a supply chain-based technology and service provider in the People's Republic of China. It has three segments: JD Retail, JD Logistics, and New Businesses. While we acknowledge the potential of JD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-06-2025
- Business
- Yahoo
JD.com (JD) Expands into Saudi Arabia with JoyExpress
Inc. (NASDAQ:JD) is one of Goldman Sachs' top Chinese stock picks. On June 18, JD Logistics, the logistics arm of Chinese e-commerce giant announced the launch of JoyExpress in Saudi Arabia—its first direct-to-consumer express delivery service outside China. This milestone marks a key step in global logistics expansion. Copyright: kzenon / 123RF Stock Photo JoyExpress is to offer delivery services as fast as the same day in Saudi Arabia, affirming push for growth on the international scene. Expansion abroad comes as the company faces stiff competition back at home. In addition, Chinese consumer confidence has dropped significantly amid wage growth concerns. The company's visionary leader, Richard Liu, has already emphasized the need for international expansion to safeguard the company's future growth. 'We have been working in Europe for three years, and the logistics infrastructure there is now basically in place. However, it's still not enough,' he said, according to local media reports. By leveraging robust logistic network and tapping innovative ventures like food delivery, Liu hopes to challenge industry leaders across various sectors. The plan is to enhance its competitive edge by offering enticing incentives and attractive delivery benefits. Inc. (NASDAQ:JD) is a major Chinese tech and service company operating through JD Retail, JD Logistics, and New Businesses, offering a broad range of products and services—from consumer goods to healthcare. It supports third-party merchants with marketplace tools, provides omni-channel and online healthcare solutions, and delivers advanced logistics and supply chain services through its robust infrastructure. While we acknowledge the potential of JD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Biotech Stocks Screaming a Buy and 13 Best Software Stocks to Buy Now. Disclosure: None. Sign in to access your portfolio
