JD.com enters parcel delivery market

JD.com (JD) has entered the parcel delivery market with a service that lets people in China use JD’s courier service to ship packages across several Chinese cities, including Beijing. Customers can use the JD app or Tencent’s (TCEHY) ubiquitous WeChat app to request pickups. WeChat boasts more than a billion users.

JD’s delivery customers can choose same-day delivery, next-day, or two-day delivery options. And delivery methods include high-speed rail and air.

JD Diversifies into Parcel Delivery

More than 40 billion parcels delivered across China

Expanding into the parcel delivery market shows that JD is diversifying its business beyond e-commerce and moving to squeeze more cash from warehouse assets. China’s parcel delivery market presents an enormous revenue opportunity for JD. Some 40.1 billion parcels were delivered across China through express means in 2017, resulting in more than $77 billion in revenue for delivery firms in the country. Alibaba (BABA) is also into the delivery business through its Cainiao subsidiary.

JD revenue increased more than 30%

JD.com currently relies on its e-commerce business for the bulk of its revenue. The company’s revenue jumped 31.2% YoY to $18.5 billion in the June quarter. The majority of the company’s revenue is generated in China. Revenue rose 61% YoY for rival Alibaba. In China, JD is collaborating with Tencent and Walmart (WM) to tackle Amazon. Outside China, the company has partnered with Google (GOOGL) to help it extend its geographic reach. Tencent, Walmart, and Google all have stakes in JD.

Latest articles

On September 14, drones attacked Saudi Arabia Aramco's oil-infrastructure. Saudi Arabia's oil production has fallen by 50%.

Apple Arcade (AAPL) is a subscription gaming service that was unveiled at Apple’s annual event last week. The service will launch on September 19.

Cannabis legalization is gaining traction not only in the US but also globally. The third presidential Democratic debate was held on September 12.

Google has agreed to make a one-time settlement of over $945 million euros to the French ministry. The ministry accused Google of evading taxes.

In Q4 2018, legendary investor George Soros sold all his holding in Apple (AAPL). In Q3 2018, Apple represented around 0.2% of his total portfolio.

Jim Chanos, the founder and president of Kynikos Associates, is a long-time short-seller of Tesla stock. Tesla stock has fallen 17.5% in the last year.