SOFT DATA
Dingdong Maicai is a fresh produce and grocery e-commerce platform where users can place orders online and then have their purchases delivered to their doorstep. The platform's most popular product categories include vegetables, fruits and seafood. Dingdong is one of the leaders of the asset-heavy self-operated format in China's grocery delivery market. The company runs hundreds of self-built "front warehouses" and its own logistics. Instead of shipping every order from one or a few warehouses around a city, the model increases delivery speed by distributing goods to hundreds of local warehouses. The direct shipment from nearby warehouses allows the company to guarantee delivery within 30 minutes to families within 1 km.
Higher delivery efficiency allows the platform to lower delivery costs and thus offering more competitive price for users. Dingdong does not have a minimum price per order for free delivery or a delivery fee. Also, the platform has achieved a loss rate as low as 1%, well below the industry average of 3-10%. Dingodng is also adopting a big data-driven approach, predicting future orders through self-developed data models and multi-dimensional predictions based on historical sales data to reduce the loss rate.
