Dada Now Customized “Intra-City Delivery” for LBX Pharmacy’s Omni-channel Orders in Lower-tier Cities

SHANGHAI, July 6, 2021 /PRNewswire/ — Dada Group (Nasdaq: DADA) ("Dada" or the "Company"), China’s leading local on-demand delivery and retail platform, is pleased to announce that its on-demand delivery platform, Dada Now has customized its "Intra City Delivery" under its "Dedicated Delivery Service" specifically for chain merchants, helping them reliably guarantee online order fulfillment across China. 

A Dada Now rider delivered LBX Pharmacy’s Omni-channel Orders
A Dada Now rider delivered LBX Pharmacy’s Omni-channel Orders

In recent years, China’s leading pharmaceutical chain retailer, LBX Pharmacy has continued to expand its business into the lower-tier cities, setting up offline stores in third- and fourth-tier cities and counties across the country. These stores that have provided online to offline service in third- and fourth-tier cities, have longer delivery distance, which requires last-mile delivery service to speed up and shortens average delivery time from one hour to less than 30 minutes.

Dada Now offers long-distance intra-city delivery services for LBX Pharmacy’s nearly 1,000 stores across the country. According to Dada Now, all LBX Pharmacy’s orders placed around 3 km were delivered to consumers within 30 minutes in this May. Among them, the intra-city delivery orders in third- and fourth-tier cities increased by nearly 16 times compared to the same period last year, and long-distance delivery orders that delivered over 5 km to consumers increased by 6 times year-on-year.

Moreover, Dada Now’s "Open Logistics Platform" has seamless undertaking orders from LBX Pharmacy’s omni-channel, including its official website, WeChat mini program, Dada’s JD Daojia ("JDDJ") and other third-party on-demand retail platforms. These orders are processed uniformly by Dada Now’s system and assigned to the stationed or crowdsourced riders. The system automatically matches the best delivery route based on its AI algorithms, helping the rider to deliver the order fast and safe.

"Dada Now provides professional and flexible delivery support for LBX Pharmacy’s stores, guaranteeing on-demand delivery of our omni-channel orders. Specially for the service in lower-tier cities, Dada has helped us effectively solve the problem of long-distance delivery, and our store assistants are able to devote themselves to more offline service intently, so as to bring convenience to users with our medicines," said Feng Xiong, Head of Online to Offline Business at LBX Pharmacy.

In addition to LBX Pharmacy, Dada Now’s Dedicated Delivery Service has served Walmart, Sam’s Club, Yonghui Superstores, CR Vanguard, Champion Pizza, McDonald’s, 7FRESH, KungFu and other supermarket and catering merchants, as well as Nepstar, Quan Yuan Tang, Shuyu Civilian Drugstore, Yifeng Pharmacy and other pharmaceutical retailers, providing chain merchants with highly-efficient fulfillment solutions.

In the first quarter, Dada Now’s intra-city delivery services to chain merchants continued to grow significantly, with revenue increasing by more than 130% year-over-year. And the revenue from pharmaceutical chain merchants increased by more than 600% year-over-year as the platform continued to enhance its service for pharmacies. Besides, its delivery service provided to small and medium-sized merchants grows fast and expands into lower-tier cities.

About Dada Group

Dada Group is a leading platform of local on-demand retail and delivery in China. It operates JDDJ, one of China’s largest local on-demand retail platforms for retailers and brand owners, and Dada Now, a leading local on-demand delivery platform open to merchants and individual senders across various industries and product categories. The company’s two platforms are inter-connected and mutually beneficial. The Dada Now platform enables improved delivery experience for participants on the JDDJ platform through its readily accessible fulfillment solutions and strong on-demand delivery infrastructure. Meanwhile, the vast volume of on-demand delivery orders from the JDDJ platform increases order volume and density for the Dada Now platform. In June 2020, Dada Group began trading on the Nasdaq Global Market, under the ticker symbol "DADA."

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