Dada-JD Daojia

 

“Click Dada, deliver quickly and professionally”

Founded: June 2014 in Shanghai, China

Category: E-commerce,  logistics & supply chain

Primary office: Shanghai, China

Core technical team: Shanghai, China

Status: Private

Employees: 1001-5000

Amount raised: $950 million (6 rounds – August, 2018)

OVERVIEW

  • Combines China’s largest localized online-to-offline (O2O) supermarket platform (Dada) with the country’s largest crowdsourced delivery network (JD-Daojiao)
  • China’s leading on-demand logistics and omni-channel ecommerce firm
  • Mission: To bring people everything on demand

 

PERFORMANCE METRICS

  • Revenue: $518 million (for 12 months ended March 31, 2020)
  • Valuation: $4.2 billion (2019)

 

ACHIEVEMENTS

  • Covers more than 450 major cities in China
  • Serves more than 1.2 million merchants and over 50 million individual users
  • Registered users: over 70 million
  • Monthly active users: over 30 million
  • Peak daily volume: over 1.5 million
  • Ranked No.57 on Hurun Global Unicorn List 2019
  • China’s most Innovative Companies (Forbes 2018)

Sells

  • Dada Express
    • Basic delivery services
    • “Bangmai & Bangsong” – pick up and deliver documents and parcels for users
    • “Daimai” – buy goods on users’ behalf

Channels

  • Online marketplace (providing wide range of products and services)
  • Mobile app (IOS & Android), online, and Wechat mini program (location based advertisements)
  • Affiliate marketing

Competencies

  • Online and offline retail and logistics
  • Use a crowdsourcing model (idle human resources) to solve last-mile delivery
  • Apply artificial intelligence, big data analysis and cloud computing to build intelligent local real-time distribution networks
  • Extensive online system testing (Binary Star) to optimize system and reduce risks
  • “Smart Logistics” that balances supply and demand services, improving route planning in the face of traffic congestion

Resources

Assets

  • Powerful shareholder and partner: JD – China’s leading online direct sales company and the country’s largest Internet company by revenue (delivery within an hour)
  • CEO/Founder, Philip Kuai, with professional experience in logistics and supply chain
  • “Cangqiong” big data platform and underlying technologies
  • Partners with large and popular brands (Walmart, Pepsi, Sam’s Cub, MINISO, Metro, 7/11, etc.)
  • Easy and highly secured payment platform – JD pay
  • User-friendly omni-channel platform for easy click, order, and buy

Processes

  • Advertisements are Location Based
  • Purchase recommendations (based on customer feedback)
  • High value orders are all completed by highly trusted couriers (“Credit Knights”) to ensure safe and speedy delivery
  • Incentive mechanisms to attract couriers
  • GPS tracking available for all carriers
  • Frequent service platform upgrades to improve customer experience
  • Issue cash coupons for first users
  • Convenient payment methods – JD pay, cash on delivery, Walmart gift card, etc.

Priorities

  • Provide speedy grocery delivery service to consumers
  • Diversify product offerings
  • Increase partnerships
  • Improve big data platform and artificial intelligence to provide better products and services
  • IPO
  • Expand to small and medium-sized cities in China

Assertions That Best Describe What the Company Did to Scale Early, Rapidly & Securely

  1. Sell online using a variety of online and offline promotional channels to increase the number of new customers and the retention rate of existing customer
  2. Increase market share by applying digital technology to brand, market, sell, and service customers more cost-effectively than competitors
  3. Increase demand of products and services by combining two or more resources in a way that the value created from them exceeds the sum of the value created from each resource separately
  4. Increase the company’s value by continuously seeking and receiving funding to support the company’s plan to scale and improve its image in the marketplace
  5. Continuously improve the user interfaces and applications that directly influence the entirety of the customer experience including personalized content, quality messaging, and the delivery and returns process to increase sales

References

  1. Dada-JD Daojia website. https://about.imdada.cn/
  2. Owler. 2020. Dada-JD Daojia. https://www.owler.com/company/daojia
  3. CrunchBase.2020. Dada-JD Daojia. https://www.crunchbase.com/organization/dada-jd-daojia#section-funding-rounds
  4. 1.5 million orders delivered in 2 hours, Dada-JD Daojia set fresh delivery and sales records on Singles Day https://finance.yahoo.com/news/1-5-million-orders-delivered-123000222.html
  5. Renaissance capital. 2020. Chinese delivery platform Dada Nexus files for an estimated $500 million US IPO https://www.nasdaq.com/articles/chinese-delivery-platform-dada-nexus-files-for-an-estimated-%24500-million-us-ipo-2020-05-12

Contributors

  • Mengya Chen