Guang Zhou Ri Bao·2025-07-08 04:31Core Viewpoint - The competition in the food delivery market is intensifying, with major players like Meituan and Alibaba engaging in a "subsidy war" to attract consumers and expand the instant retail market [1][2]. Group 1: Market Dynamics - Meituan and Alibaba are offering unprecedented subsidy levels to drive consumer engagement and increase order volumes, particularly in the beverage sector [1][2]. - As of July 5, Meituan reported over 1.2 billion orders in a single day, with more than 1 billion of those being food delivery orders [2]. - The competition has led to significant stock price increases for beverage companies, with notable gains for brands like Tea Baidao (up 11.04%) and Nayuki (up 3.95%) [2]. Group 2: Strategic Focus - The current subsidy strategy is aimed at not just acquiring new users but also activating existing demand, focusing on high-frequency consumption scenarios like fresh produce and daily necessities [2][4]. - Alibaba's Taobao Flash and Ele.me reported a surge in daily orders from over 10 million to 80 million within two months, indicating rapid growth in the instant retail sector [3]. Group 3: Long-term Considerations - Industry experts emphasize the importance of customer retention over time, noting that high subsidies cannot be sustained indefinitely [4]. - Future competition will likely hinge on factors such as fulfillment efficiency, supply chain capabilities, service quality, and ecosystem development, which are crucial for retaining users [4].