Chinese e-commerce giants Alibaba and JD.com are escalating their rivalry by making substantial investments in ultra-fast delivery services, aiming to capture a larger share of the fiercely competitive market. In 2025, both companies have aggressively expanded into “instant retail,” which promises delivery speeds of 30 to 60 minutes, marking a significant shift from traditional next-day or same-day services. This move comes as both giants face slowing growth in their core businesses and increasing pressure from rivals like Meituan, which has also enhanced its own instashopping platform to deliver non-food items within 30 minutes.

The battle for speed is proving costly. JD.com’s JD Takeaway and Alibaba’s Ele.me, the latter being China’s second-largest food delivery service, each pledged 10 billion yuan (about $1.38 billion) in subsidies to attract price-sensitive consumers. Discounts are now common, with JD Takeaway users enjoying up to 20 yuan off daily orders from major chains, and Taobao’s instant shopping portal offering 11 yuan off purchases over 15 yuan. These subsidies have delighted consumers, who now benefit from ultra-cheap, rapid deliveries of everything from coffee to electronics.

Despite the high costs, both Alibaba and JD.com are leveraging their vast networks of couriers and logistical infrastructure, which gives them an edge over newer entrants who would need to invest heavily to match their reach. As of December 2024, Alibaba, JD.com, and Meituan reported net cash reserves of 400 billion, 144 billion, and 110 billion yuan respectively, providing the financial muscle to sustain these expensive bets. Analysts note that these companies are using high-frequency purchases like food and beverages to drive engagement and boost sales in other categories, such as apparel and electronics.

The strategic imperative behind these investments is clear: as growth opportunities shrink and consumer spending slows, dominating instant retail may be the key to retaining customer loyalty and stimulating new demand. Both giants are hoping that their expensive push into fast deliveries will pay off by increasing app engagement and cross-category purchases, even as profit margins remain thin.