On May 16th, Beijing time, local instant retail and delivery platform Dada Group (Nasdaq: DADA) released its Q1 2024 results.
In the first quarter, the total revenue of Dada Group was 2.5 billion yuan, and the revenue of Dada Express increased by 57% year-on-year to 1.2 billion yuan, reaching a new high in the past eight quarters. Fully integrated into the JD ecosystem, the original instant retail brands JD Houda and JD Daojia have been fully integrated and upgraded to "JD Instant Delivery".
Upgrade hourly delivery and JD Home Delivery to "JD Instant Delivery"
In the first quarter, JD.com continued to make efforts in both supply and demand. JD Second Delivery continues to expand cooperation with high-quality merchants, with a year-on-year increase of over 80% in the number of active stores in the JD App field. In addition, JD's instant delivery linkage merchants have further lowered the free shipping threshold from 59 yuan to 29 yuan, and the event has covered nearly 80% of stores. The conversion rate of new customers has improved by 20%, the 7-day retention rate has increased by more than 10%, and the repurchase rate of old customers has increased by nearly 30%. As of the end of March, the proportion of high priced star rated products in the JD App market increased by more than 6 percentage points year-on-year.
In the first quarter, the GMV from JD App's field increased by over 30% year-on-year, among which the GMV of the instant delivery channel increased by over 200% year-on-year. The penetration rate of JD instant delivery retail among JD users continued to increase. In the first quarter, the monthly average number of ordered users and order volume in the JD App field achieved a year-on-year growth of over 70%, accelerating by more than 50 percentage points compared to the fourth quarter of last year.
In the just past April, the year-on-year growth rate of the number of ordering users and order volume further accelerated to over 100%. At the same time, user stickiness is also increasing. In March, the repurchase rate of users in the JD App field increased by over 30% year-on-year in the following month.
At the level of subcategories, JD Instant Delivery has also demonstrated the ability to continuously empower merchants to grow.
In the first quarter, JD.com's second delivery continued to deepen cooperation with top convenience store brands such as Meiyijia, with over 5000 new online stores added and GMV from convenience stores increasing by more than five times year-on-year. In the first quarter, in terms of mobile phones, brands such as Xiaomi saw a nearly 100% year-on-year increase in GMV, and over 3000 new stores for computer and digital products were launched. GMV maintained a rapid growth of nearly 40% year-on-year. In terms of home appliances and home furnishings, new smart home appliance brands such as Yunmi have been signed, promoting the launch of over 6000 new stores. The GMV brought by home appliances and home furnishings has increased by nearly 150% and over 40% year-on-year, respectively. Collaborated with top chain merchants in the beverage industry, resulting in a nearly double year-on-year increase in GMV; Deepen cooperation with sports and outdoor brands, driving the overall GMV of clothing categories to increase by more than twice year-on-year.
Dada Express's revenue growth rate has reached a new high in the past 8 quarters
In the first quarter, Dada Express achieved a high growth rate of 57% year-on-year, reaching the highest in the past eight quarters, once again exceeding market expectations, with a business revenue of 1.2 billion yuan, based on comprehensive optimization of its refined performance capabilities.
In the first quarter, Dada Express teamed up with more top catering customers and achieved breakthroughs in cooperation with top customers such as Yum! China; Tu Yanping, a rider of Dada Express, was awarded the "2023 Excellent Delivery Provider" and "Best Operation Guarantee Award" by Luckin Coffee. In the first quarter, Dada Kuaishou and Dongfang Zhenxuan reached a cooperation agreement to fully undertake the latter's hourly delivery business, and together with Dongfang Zhenxuan, provide consumers with a convenient consumption experience of "live streaming and 1-hour delivery to home".
In terms of the business of Dada Express platform, thanks to the continuous penetration of professional markets and other scenarios, the improvement of high-value order service experience, and the optimization of pricing ability, the completion volume of platform business in the first quarter continued to steadily increase year-on-year. The quality, cost, and efficiency of Dada Express's real-time fulfillment service have been widely recognized by merchants and users.
Dada Express continues to leverage the social and livelihood value of the platform's "employment reservoir". The 520, 618, and summer promotions are coming soon. In preparation for a surge in orders, Dada Express has recently launched the recruitment of summer knights for 2024, investing 50 million yuan in knights subsidies to attract more flexible employment workers. In March of this year, some Shanghai Dada Express riders were the first to move into government subsidized new apartments, effectively improving their quality of life.
Dada Group stated that in 2024, it will firmly focus on a healthy growth strategy, adhere to user centricity, fully integrate into the JD ecosystem, strengthen the construction of instant retail mindset, promote efficient collaboration between instant retail and instant delivery, and ultimately achieve long-term sustainable development of its business.
