On November 14th, Dada Group (NASDAQ: DADA) released its third quarter 2024 performance report. In the third quarter, the company's revenue decreased by 7.3% year-on-year to 2.4294 billion yuan, compared to 2.6218 billion yuan in the same period last year; Non GAAP reported a net profit loss of 59 million yuan, corresponding to a loss rate of 2%. The quarter on quarter decrease was 3.7 percentage points, indicating an improvement in profitability.
From a business perspective, Dada's third quarter revenue increased by 38.6% year-on-year to 1.4992 billion yuan, compared to 1.0816 billion yuan in the same period last year. The growth was mainly due to an increase in orders for same city instant delivery services provided to various chain merchants.
In fact, since the beginning of this year, Dada's delivery orders have continued to maintain strong growth, with revenue increasing by 46% year-on-year in the first three quarters. In the third quarter, Dada Express deepened its cooperation with chain merchants and improved the quality of its delivery services. The total number of completed orders increased by 36% year-on-year to 648 million orders. At the same time, through technology driven refined operations, continuous optimization of distribution routes, and dynamic adjustment of subsidy levels, Dada's price competitiveness has been strengthened, promoting an increase in market share.
In terms of instant retail business, the third quarter revenue of JD. com's instant delivery platform was 930.2 million yuan, compared to 1.5403 billion yuan in the same period last year. The main reason was the decrease in online advertising and marketing service revenue, as well as the comprehensive launch of a delivery fee reduction plan for orders exceeding 29 yuan since February 2024, resulting in a decrease in fulfillment services and other revenue.
It is worth mentioning that in the third quarter, the monthly average number of ordered users and order volume of JD's Mi Send in the JD App field continued to maintain a high-speed growth momentum, and the penetration rate of Mi Send in the JD user group continued to increase month on month.
Specifically, the overall exposure conversion rate of JD App's market in the third quarter increased by over 100% compared to the second quarter. In the third quarter of the JD market, the monthly average trading users of JD's instant messaging services maintained a sustained growth momentum, with a year-on-year increase of over 100%. Among them, the number of high-frequency and high-quality users in the JD App field doubled year-on-year. In the third quarter, the daily average number of PLUS users placing orders in the JD App field continued to grow, with a significant increase of over 50% compared to the second quarter. In addition, the delivery experience has been continuously optimized by Instant Delivery, with an average fulfillment time reduced by 20% year-on-year.
As of the end of September, the total number of operating stores on JD.com 'Mi Song platform exceeded 600000, a year-on-year increase of over 70%. In the supermarket category, JD.com continues to deepen its cooperation with large chain supermarkets. In the convenience store category, we collaborated with internationally renowned convenience store brands such as Lawson in July and have now launched over 1000 stores; In the 3C digital category, JD.com has deepened its cooperation with benchmark large customers. On the day of the release of the iPhone 16 series, the sales of the iPhone 15 series achieved double-digit growth compared to last year. Other models such as Xiaomi and Huawei also showed high-speed year-on-year growth.
It is worth mentioning that in recent times, JD.com has been continuously increasing its instant retail business. On May 16th, JD's instant retail business (integrating the original instant retail brands JD Hour Delivery and JD Home Delivery) was fully upgraded and launched JD Instant Delivery, providing consumers with a shopping experience with the fastest delivery time of 9 minutes. At that time, JD Express had now covered more than 2300 counties, districts, and cities across the country, with over 500000 cooperative stores covering all product categories.
Subsequently, data released by JD.com showed that during this year's 618 shopping festival, the average delivery time for JD's instant retail business orders increased by 19% year-on-year. During the just passed JD 11.11 period, the daily peak of online order volume for instant delivery once again reached a historical high.
The broad prospects of the instant retail industry have become a consensus, which is also an important background for JD to accelerate its layout. The latest report from the Market Research Institute of the Research Institute of the Ministry of Commerce shows that in 2023, the order size of the domestic instant delivery industry is about 40.9 billion, a year-on-year increase of 22.8%, and the instant delivery market size is 341 billion yuan, a year-on-year increase of 24.8%.