Dada Group（Chinese：达达集团）released its Q2 2023 financial results on August 16th. The company achieved a revenue of CNY 2.8 billion（USD 434 million）in this quarter, representing a 23% YoY growth compared to the same period last year. The adjusted net profit also improved by over 17 percentage points YoY, marking the first overall profitability for Dada Group since its listing.
Dada Group released its Q2 2023 financial report on August 16th. The company recorded a revenue of CNY 2.8 billion（USD 434 million）in the quarter, representing a 23% year-on-year growth. Moreover, Dada Group achieved profitability with adjusted net profit improving by over 17 percentage points compared to the same period last year, marking the first overall profitability since its listing.
Dada Group is a leading local on-demand retail and delivery platform in China, founded in Shanghai in 2014 and listed on the NASDAQ in June 2020.
Dada Now, a subsidiary of Dada Group, is China's leading local on-demand delivery platform. It operates on a crowdsourcing model and provides a full range of services, including on-demand delivery, scheduled delivery, and personalized delivery, serving well-known enterprises, SMEs, and individual users across various industries. JD Daojia, another subsidiary of Dada Group, is China's leading local on-demand retail platform, leveraging Dada Now and retail partners. Currently, Dada Now covers over 2,700 counties and districts nationwide, while JD Daojia operates in more than 1,700 counties and districts.
The financial report of Dada Group shows the continued rapid growth of both platforms. JD Daojia achieved a Q2 revenue of CNY 1.8 billion（USD 279 million）, a 25% year-on-year increase. As of June 30, 2023, the platform's total Gross Merchandise Volume (GMV) reached CNY 70.8 billion, representing a 30% year-on-year growth. JD Daojia has been expanding its merchant base and enriching the supply of goods. In Q2, the number of active stores on JD Daojia exceeded 300,000, a year-on-year increase of over 70%. Dada Now recorded a Q2 revenue of CNY 1 billion, a 20% year-on-year growth, while the number of active riders increased by over 30% in the same period.
The on-demand delivery service industry had a total order volume of 27.9 billion in 2021. With the increasing value of on-demand delivery services, it is projected that the industry's order volume will reach nearly 95.8 billion by 2026, with a compound annual growth rate of 28.0% from 2021 to 2026. The industry is still on a fast development trajectory. In the future, third-party on-demand delivery service providers will play an increasingly important role in further optimizing end-to-end services.
In terms of international expansion, Dada platform has partnered with almost all leading chain supermarkets in China, including Walmart, Yonghui, and CR Vanguard. Additionally, Walmart Group（Chinese：沃尔玛）, one of the world's most prestigious retail giants, has invested in its subsidiaries and established comprehensive strategic cooperation, enhancing trust and support for the Dada platform. JDDJ (JD Daojia) is one of China's largest local on-demand retail platforms, covering approximately 2,200 cities and counties with a GMV exceeding CNY 206.3 billion by the end of 2022.
Key players in the on-demand delivery service industry include Meituan Delivery（Chinese美团配送）, Ele.me（Chinese：蜂鸟即配）, and Dada Now in China, as well as international players such as Germany's Arive, Uber Eats (global), Deliveroo in the UK, Swiggy and Zomato in India.
"We are extremely proud to achieve profitability for the first time in a quarter, adjusted for the Dada Group," said Huijian He, President of Dada Group. "We firmly believe in the long-term market potential of the on-demand retail and delivery sector. By deepening cooperation with retailers and brands, optimizing the consumer experience, providing flexible employment opportunities for riders, and strengthening strategic collaboration with JD Group, we will continue to create sustainable value for all stakeholders."