Pinduoduo has more than 500 million users, but JD is still the most profitable
Chinese e-commerce upstart Pinduoduo has overtaken rival JD.com to become China’s second most valuable online retailer after Alibaba, following a 5.26% rise in its shares on Tuesday that moved its market capitalization to $69.3 billion, media said.
Moreover, Pinduoduo had 585.2 million active buyers in 2019, beating JD.com which had 362 million active consumers for the year, according to the two companies’ respective latest earnings reports. Despite its new status as China’s second largest e-commerce player by market value, experts said Pinduoduo still has a long way to go to be profitable.
JD is known among Chinese customers for reliability, trust and speed.
According to data, Tencent-backed Pinduoduo posted a net loss of 1.8 billion yuan in the fourth quarter of 2019, in sharp contrast to JD.com, which made a net profit of 3.6 billion yuan for the same period. And JD sales are growing. Beijing- based e-commerce giant reported in first-quarter a +20.7% from a year ago to 146.2 billion yuan as the coronavirus pandemic forced more people to shop online.
JD is investing in logistics too. Last year the company already invested in JD-Express delivery mini-program, After the beginning of the coronavirus outbreak in Wuhan, JD has made it a priority to deliver goods to medical institutions and after the emergency, the e-commerce giant is still boosting its new fully hitech logistic harm. The firm revealed that after novel coronavirus outbreak, more robots will start delivering goods in first tier cities. In fact, since 2016, JD has expanded the range of logistics services offered to third-party merchants.
With the company that continues to launch innovative initiatives such as archiving solutions, it is increasingly clear that JD’s logistic capabilities can benefit not only JD’s activities, but also a number of other sectors and traders.
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