Liu Qiangdong: Qixian Xiaochu's restaurant orders explode within a 5-kilometer radius

Liu Qiangdong stated that he discovered during a casual conversation that the commission rate for food delivery platforms can be as high as 25%. "My first venture was opening a restaurant, and I know very well that there are not many restaurants in the country with a net profit margin of 25%. This can easily lead to issues such as food safety not being guaranteed and ghost restaurants." He pointed out that JD.com has innovated its model to operate its own food delivery service, opening the first store of "Qixian Xiaochu" two months ago, which has received at least 1,500 orders daily, driving a more than 30% surge in order volume within a 5-kilometer radius. "This means that we are not squeezing the living space of the food service providers in this area; instead, we are bringing them trust and more traffic."