Dingdong, China’s Instacart, Is a Fast-Growing and Profitable Investment Opportunity in Grocery Delivery

Dingdong (Cayman) Limited, or better known as Dingdong Maicai, is a leading Chinese e-commerce platform specializing in fresh groceries, meat, seafood, and daily necessities. Listed on the U.S. stock market under the ticker symbol DDL, the company was founded in Shanghai in 2017. It operates over 950 frontline fulfillment stations and 40 regional processing centers, focusing on first- and second-tier cities such as Shanghai and Nanjing, as well as affluent regions like Zhejiang and Jiangsu. Following its exit from smaller, cost-conscious markets, Dingdong has optimized store density and introduced premium private-label products to enhance margins. The company is experiencing rapid growth and sustained profitability.

In Q3 2024, Dingdong reported impressive financial results: revenue surged 27% year-over-year to RMB 6.54 billion, GMV rose 28% to RMB 7.27 billion, and non-GAAP net income skyrocketed 942% to RMB 161 million, marking the company’s eighth consecutive profitable quarter. On a quarter-on-quarter basis, Dingdong’s net margins have steadily improved from 0.2% in Q1 2024 to 1.2% in Q2, and further to 2.0% in Q3. This surpasses the 1.37% net margin of U.S. supermarket giant Kroger in its latest quarter, though it trails Walmart's 2.66%.