Benzinga | Dec 4, 2020 05:15AM EST

Dada Announced Partnership with Dozens of Cake Chain Brands Across China to Enhance Delivery Process

Dada Group (NASDAQ:DADA) is pleased to announce that Dada Now has partnered with dozens of cake chain brands across China, doubling the number of cooperating stores year-over-year as of November 2020. As a result of these partnerships and consumers' increased dependence on e-commerce, the average daily delivery order volume for cakes has increased by more than 144% compared to the same period last year.

Dada Now, the local on-demand delivery platform of Dada Group, is the largest open on-demand delivery platform in China based on the number of orders in the first nine months of 2020 according to an iResearch Report, and its last-mile delivery service covers more than 2,600 cities and counties in China.

Leveraging cutting-edge proprietary technologies and deep insights into the logistics industry, Dada Now has developed a premium service called "Dedicated Delivery" that targets merchants with specific delivery requirements, which launched in July 2020. These tailored services enable chains and brands to meet rising demand and accelerate both their online and offline businesses. Cakes are fairly large in size, higher in value and easier to damage than most catering and grocery products delivered by Dada Now, and many prominent cake brands including Ganso, CUNS CAKE, 1CAKE, 7CAKE and LE CAKE are taking advantage of these customized omni-channel delivery services. Dada Now also offers customers an efficient one-hour shopping experience.

Dada Now takes multiple approaches to ensuring cakes are delivered undamaged, fresh and on time. Riders participate in a customized training program, which includes measures that must be taken to keep cakes cool, tips for delivery and even etiquette for drop off and pick up. Further, Dada Now's logistics technology dynamically matches the "crowdsourcing" riders or the "stationed" riders based on the different fulfillment requirements of stores and provides customized solutions to maximize the efficiency of distribution capacity. Additionally, to ensure that Dedicated Delivery service is always improving, Dada Now's Operation Support Team visits stores regularly to gather feedback from the front-line staff and learn about any potential concerns they have regarding the service.

Dedicated delivery service for cakes has so far proven successful and data shows that as of November 2020, the average daily orders at Ganso delivered by Dada Now has increased 89% as compared to the beginning of this cooperation in 2020. On average, delivery time is about 30 minutes, and the service is well-received by stores and consumers alike.

Philip Kuai, Founder, Chairman and CEO of Dada Group, said, "Our logistics capabilities, proprietary technologies, dedicated riders, and comprehensive order fulfillment data analysis provides all-around operational support for cake stores, ensuring stable, efficient and high-quality services that customers will use again and again. We are proud to provide a service that empowers cake chains and other stores requiring tailored services to overcome logistical difficulties, allowing them to grow and adapt for the age of on-demand e-commerce."

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