<div id="readability-page-1"><div><div>Alibaba Group Holding BABA and JD.com JD are now competing fiercely in instant retail, where items are supposedly delivered within 30 to 60 minutes.What Happened: Facing slowing growth and squeezed consumer budgets, Alibaba's Ele.me and JD.com's JD Takeaway each pledged ¥10 billion ($1.38 billion) in subsidies to lure customers with ultra-fast deliveries last month, reported Reuters. On JD Takeaway, daily discounts of up to ¥20 ($2.77) on restaurant orders have become common. The report cited a 24-year-old entrepreneur in Tianjin, who happily paid only ¥5.90 for a coconut latte.&#34;I asked the deliveryman and he said he makes ¥4 per delivery, so essentially, JD.com bought me a cup of coffee and delivered it to my door,&#34; Liu Qi said.A few days later, Liu purchased a bubble tea via Alibaba-owned Taobao's instant portal for just ¥3.90, ¥2 cheaper than JD.com's offer.&#34;The competition is so intense, there's not a lot of incremental growth opportunities, so everybody is moving into everybody else's territories and instant retail is the latest example of that,&#34; said Jason Yu, general manager at CTR Market Research.China's leading food delivery company, Meituan MPNGY, has taken steps to expand its operations by scaling up its instant shopping service, which offers delivery of non-food items in under 30 minutes. JD.com made its debut in the food delivery sector in February.Why It's Important: As per the report, China's e-commerce giants can double down on instant retail despite their low profit margins, thanks to their deep cash reserves and existing delivery networks.As of Dec. 31, Alibaba, JD.com, and Meituan held net cash positions of ¥400 billion, ¥144 billion, and ¥110 billion, respectively, the report noted, citing Morningstar analysts.These companies are also strategically using high-frequency purchases like food and drinks to drive sales of higher-margin goods such as electronics and clothing.The U.S. and China on Monday agreed to dramatically reduce retaliatory tariffs, marking a pause in the escalating trade war that had posed serious risks to global economic growth.Price Action: On Monday, shares of JD.com rose by 6.47%, while Alibaba gained 5.76%. In after-hours trading, JD.com saw an additional increase of 1.14%, and Alibaba edged up by 0.68%, according to Benzinga Pro data.Photo Courtesy: Tada Images On Shutterstock.com<ul> <li>‘Sell In May And Go Away?' Only In Bear Markets, One Expert Says </li> </ul></div></div></div>

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Alibaba and JD.com are intensifying competition in instant retail, pledging ¥10 billion each for subsidies to attract customers with rapid deliveries. This comes amid slowing growth and tighter consumer budgets. JD Takeaway and Alibaba's Ele.me are offering significant discounts, with reports of customers receiving heavily subsidized orders. Despite low profit margins, these companies leverage their cash reserves to expand in this sector. Following the news, JD.com's shares rose by 6.47% and Alibaba's by 5.76%.

- Alibaba Group and JD.com are competing in instant retail, promising deliveries within 30 to 60 minutes.  
- Both companies have committed ¥10 billion ($1.38 billion) in subsidies to attract customers, with JD Takeaway offering daily discounts and Alibaba's Taobao providing competitive pricing.  
- Despite low profit margins, these e-commerce giants leverage their cash reserves and delivery networks to expand instant retail, aiming to boost sales of higher-margin products.

Alibaba And JD.com Are Literally Paying The Price As China Delivery Wars Heat Up