JD.com Pulls Out From Indonesia and Thailand To Focus On Cross Border Supply Chain
JD.Com, Inc (NASDAQ: JD) prepared to discontinue all services in Indonesia and Thailand in March for reasons undisclosed, the related websites reflected.
JD.com looked to end its services in Thailand from March 3, while in Indonesia, it will cease operations at the end of March, the websites showed, Reuters reports.
Both units proposed to stop taking orders on February 15.
JD plans to pivot from running its regional e-commerce platforms to building "a cross-border supply chain network with logistics and warehousing" to serve regional global customers, including those in Southeast Asia, a company representative said, SCMP reports.
JD.com will continue to serve global markets, including Southeast Asia, through its supply chain infrastructure.
In Indonesia, JD.com began its e-commerce operation under the name JD.ID in 2015.
JD.com began operating in Thailand in 2017 as a joint venture between China's JD.com and Thailand's most significant retailer Central Group.
China's e-commerce growth potential triggered fierce rivalry between Singapore-based firms Shopee, owned by Tencent Holding Ltd (OTC: TCEHY), and Alibaba Group Holding Limited's (NYSE: BABA) Lazada, leaving little room for JD.
JD has already raised its investments in supply chain solutions for local clients in Malaysia and Poland through its JD Logistics subsidiary.
JD.com reported third-quarter FY22 revenue growth of 11.4% year-on-year to $34.2 billion, missing the consensus of $34.4 billion.
Non-GAAP net income per ADS of $0.88 beat the consensus of $0.63.
Price Action: JD shares closed higher by 1% at $63.74 on Friday.
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