The rise of the third force in the food delivery industry: valuation of 30 billion after 6 years of establishment, may challenge the status of Ele.me and Meituan

Instant delivery, with the advancement of science and technology, has become an indispensable part of people's lives. Be it deliveries, documents or buying fresh vegetables, cakes and flowers, it does it all. It can help us save a lot of time and energy. According to statistics, the number of domestic users using instant delivery services has reached 358 million, and this number is still growing and expanding.

Instant express delivery and traditional express delivery services belong to the same line, so many express delivery giants also want to get a piece of the cake. Express delivery companies have inherent advantages in instant express delivery. But for consumers, I believe many people are accustomed to the in-house delivery services of Ele.me and Meituan. Suffice to say, when it’s time to order lunch, these two apps are the first ones I can think of. In fact, there is another company. Although it is not as well-known as the first two, this does not prevent it from becoming a dark horse in the industry-Dada-JD Daojia.

It is understood that Dada-JD Daojia is mainly positioned as an intra-city express delivery, express delivery and boundless new retail instant consumption platform. According to Hurun Greater China Unicorns 2018 data, the company's stock market size is 30 billion yuan. At present, Dada-JD Daojia has covered more than 450 major cities across the country, serving more than 1.2 million companies, more than 70 million individual users, and an average daily peak volume of 10 million. Since its inception, Dada has received more than US$1.3 billion in funding in five years.

Dada founder Kuai Jiaqi graduated from Tongji University and later studied abroad and worked for well-known companies such as McKinsey and Oracle. After returning to China, Kuai Jiaqi and his classmates founded Electronic Media and sold it to Alibaba. Later, Kuai Jiaqi became a partner of Anjuke and was responsible for all businesses except sales. In 2014, Kuai Jiaqi started his third business venture. This time, he saw the development prospects of the logistics and distribution industry, and "Dada" was born.

Dada’s early model was a bit like Didi. In short, I use my free time to take orders and make money. On the one hand, it does not cost too much; on the other hand, businesses and consumers can also enjoy the convenience, which can be said to be a win-win for all three parties. This model was quickly recognized by the market, and a cooperative relationship was reached with Ele.me.

Afterwards, with the rise of major food delivery platforms, Dada took advantage of this advantage to accelerate its development and gradually became the largest third-party delivery platform in the 020 market. In less than a year, Dada was worth more than $1 billion. With the end of the "Hundred Regiments War" in the food delivery field, many well-known companies have disappeared in the rolling history and people's vision. At the same time, giants such as Meituan and Ele.me have gradually gained a foothold in the industry and begun to independently carry out logistics business.

This undoubtedly had a great impact on Dada. Without the traffic support of the food delivery platform, Dada's development was in a bottleneck period, which made Dada realize that the platform needed more usage scenarios. In 2016, Dada and JD Daojia merged. With the complementary resources of both parties, Dada-JD Daojia has cooperated with a number of large retail companies, including more than 270 Wal-Mart supermarkets, more than 700 Yonghui supermarkets, and more than 1,000 China Resources Vanguard.

With the success of Dada, Kuai Jiaqi, together with Wang Tao, founder of DJI, and Cheng Wei, founder of Didi, were selected into the list of business elites under 40 years old in 2019. It has only been six years since Dada was founded, but it has developed into the biggest dark horse in the industry. We have to marvel at its rapid development.

Prior to this, there were media reports that Dada-JD Daojia was negotiating with some investment banks and planned to be listed in the United States in May 2020. Relevant people from Dada-JD Daojia declined to comment on this news. Of course, all this is inseparable from the credit of its founder Kuai Jiaqi. What kind of miracles will Dada-JD Daojia create in the future? Can the plan to go public in the United States come true? What do you think about this?