JD.com’s Founder Targets Massive Revamp Following ‘Lost Five Years’

Richard Liu, founder and Chairman of China’s technology giant JD.com (JD) (HK:9618), is targeting a massive turnaround for the company after what he views as “a lost five years.” JD.com boasts a well-established logistics network, which it seeks to leverage in other business arenas such as food delivery and travel. The news was first reported by Bloomberg, citing Liu’s comments at a news conference at JD’s Beijing headquarters on Tuesday.

Liu termed the past half-decade as the “darkest period” for the company, having lost its way after a government crackdown in 2020, while rival companies like PDD Holdings (PDD) raced ahead. He blamed himself personally for the lack of innovation, growth, and progress at JD.com, and said, “It should be considered the most unremarkable and least-valuable five years in my entrepreneurial history.”

JD Ramps Up Competition with Rival Meituan

Liu particularly highlighted that JD.com will compete neck-and-neck with rival Meituan in several other fields where it does not already operate. For instance, he has plans for JD’s entry into the hotel and flight bookings market. Liu’s strategy involves offering a three-year membership program to partners that will waive off commissions for hotels.  

In March, JD.com entered China’s $80 billion food delivery market, a stronghold of Meituan and Alibaba Group (BABA) (HK:9988). During the launch, Liu personally promoted the business by handing out takeout orders to customers. The company also offered 10 billion yuan ($1.4 billion) in user subsidies and promised above-industry benefits for his delivery team of 100,000 riders. Importantly, customers from JD’s food delivery business have also become loyal to its e-commerce platform.

Furthermore, JD.com will expand into foreign markets and strengthen its international footprint. Liu added that the JD.com portal will launch in Europe in 2026, after three years of building infrastructure in the region. He emphasized that JD.com will not compromise on quality or price to succeed in the online-shopping market, unlike rival PDD. As part of JD.com’s next phase of growth, CEO Sandy Xu will assume full leadership of JD’s domestic business, Liu added.

Is JD a Good Buy Now?

Analysts remain highly optimistic about JD.com’s long-term stock trajectory. On TipRanks, JD stock has a Strong Buy consensus rating based on 10 Buys and three Hold ratings. Also, the average JD.com price target of $48.77 implies 47% upside potential from current levels. Year-to-date, JD stock has lost 4.3%.

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