0825 GMT - JD.com's new entry to the food-delivery business shouldn't affect Meituan's market-leading position among restaurant merchants given the latter's strong conversion rate, Citi analysts write in a note. JD has begun inviting merchants to join its food-delivery app and has waived commission fees for merchants that on-board before May 1, they note. The move reflects JD's efforts to better leverage logistics unit Dada's resources and capacity to improve operating efficiency, and enhances Dada's revenue sources, they say. The incremental cost of getting into the food-delivery business is likely manageable for JD's financials, and the company should remain prudent with incentives, based on its track record, Citi says. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
(END) Dow Jones Newswires
February 12, 2025 03:25 ET (08:25 GMT)
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