Dada is Leading the Retail Market in China
Dada aims to build a closed-loop in its business flow and logistics, and it wishes to ensure deliver of every commodity on time, with the regularity of a pacemaker. The firm's operating income is expected to increase by 74.8%.
According to Zhongxin Securities’ research report, Dada is now the leading tier-one firm in the retail market, and it is expected to realize a first profit in 2022. Specifically, the firm’s front end relies on JD.com’s guidance, and its terminal, based on order density, builds an intelligent system and an efficient freight network with advanced management.
While for profitability, Dada’s net profits and operational cash flows have recently been improved at the same time. To be more precise, its net loss decreased by CNY 0.23 billion to CNY 1.42 billion in 2019. Moreover, even during the COVID-19, its incomes were still doubled while the net loss was decreasing.
Regarding Dada’s core businesses, there are Dada Kuaisong and JD Daojia. Dada Kuaisong is a local distribution platform, providing a stable one-hour delivery service. By the first quarter of 2020, this platform owned 0.63 million riders, covering 2400 counties. As for JD Daojia, it is a retail platform. The purpose of JD Daojia is to help local dealers to accelerate the digitalization, setting up an O2O platform.