Zhong Guo Jing Ying Bao·2025-05-14 05:19Core Viewpoint - The Chinese government is taking regulatory action against major food delivery platforms like JD, Meituan, and Ele.me due to intensified competition and concerns over unfair practices in the industry [1][3]. Regulatory Actions - The State Administration for Market Regulation, along with other government departments, has urged platforms to comply with laws such as the E-commerce Law and the Anti-Unfair Competition Law, emphasizing the need for fair competition and consumer protection [1][3]. - The recent discussions were prompted by JD's entry into the food delivery market and aggressive subsidy strategies from various platforms, leading to a competitive environment that raises concerns about market order [1][2]. Market Competition - The food delivery market is experiencing a "subsidy war," with platforms offering significant discounts to attract consumers, resulting in a surge in order volumes for certain food categories, particularly during holidays [2][3]. - Some restaurant owners report that while order volumes have increased, the profitability from these subsidized orders is low, leading to operational challenges [2]. Impact on Delivery Riders - The increase in order volumes has put pressure on delivery riders, leading to longer working hours and safety concerns, with reports of accidents and emotional distress among riders due to the high demand [3]. - Some riders are taking on multiple platform jobs to manage the workload, indicating a shift in the labor dynamics within the industry [2][3]. Future Outlook - Analysts predict that the regulatory discussions may lead to a reduction in the intensity of competition among food delivery platforms, potentially resulting in adjustments to subsidy strategies [4][5]. - There is a belief that while competition should be encouraged to stimulate consumption, it must be balanced with regulatory oversight to prevent market chaos and protect consumer rights [5].