Huan Qiu Wang·2025-05-29 00:17Core Viewpoint - The ongoing competition among food delivery platforms, particularly between Meituan and JD.com, has intensified, leading to aggressive price wars and significant market share shifts, raising concerns about the sustainability of such practices and their impact on service quality and market order [1][4][5]. Group 1: Competition Dynamics - Meituan appointed Fan Zhendong as its lifestyle ambassador, signaling a strategic move amidst fierce competition with JD.com, which has launched substantial subsidies to attract users [1]. - The competition has escalated into a price war, with JD.com and Meituan engaging in a public spat, while Ele.me has also joined the fray by increasing its subsidies [2][4]. - JD.com has quickly gained a 9.1% market share in just three months, while Meituan's market share has dropped to 58.6%, indicating a significant shift in consumer preferences [2][6]. Group 2: Consumer Behavior - Consumers, referred to as "sheep party," are actively seeking ways to benefit from the ongoing subsidies, with social media platforms filled with tips on how to maximize discounts [2][3]. - The low prices, such as 4.9 yuan for coffee, have attracted many consumers, leading to a surge in orders and creating a culture of exploiting promotional offers [2][3]. Group 3: Regulatory Concerns - The Chinese government has expressed concerns over "involutionary competition," prompting regulatory bodies to hold discussions with major platforms to address issues arising from aggressive pricing strategies [4][5]. - Recent regulatory actions have included multiple consultations with platforms like JD.com, Meituan, and Ele.me to ensure fair competition and market order [4][5]. Group 4: Financial Performance and Future Outlook - The financial impact of the ongoing competition has yet to be fully reflected in the quarterly earnings reports, but the aggressive strategies are expected to influence future performance [6]. - Meituan's CEO has indicated a commitment to countering low-quality competition while investing in the ecosystem, including rider welfare and merchant support, to promote sustainable growth [6][7]. - The rise of instant retail is seen as the next battleground for these platforms, with significant growth reported in various product categories ahead of the upcoming shopping festival [7].