Sou Hu Cai Jing·2025-07-15 22:03Group 1: Core Insights - The article highlights the paradox of the subsidy war in China's food delivery market, where riders earn more at the expense of merchants' profits [4][6][12] - It emphasizes the dual nature of subsidies, acting as both a lifeline and a poison for businesses, leading to unsustainable practices [4][6] - The competition between platforms like Meituan and JD.com is characterized by aggressive price wars, resulting in significant profit compression for merchants [7][11] Group 2: Market Dynamics - The article contrasts the Chinese delivery model with the U.S. model, noting that U.S. platforms like DoorDash achieve profitability through technology and efficient cost management, while Chinese platforms rely heavily on subsidies [9][11] - It points out that the average commission rates for Chinese platforms exceed 22%, compared to a stable 15% for U.S. counterparts, indicating a less sustainable business model in China [9][11] - The report from Morgan Stanley suggests that the gross merchandise value (GMV) in China's instant retail market may be inflated by 30%, raising concerns about the market's health [9] Group 3: Challenges and Risks - The article discusses the operational challenges faced by delivery platforms, such as high loss rates due to strict supply chain demands, which are exacerbated by the subsidy model [6][12] - It mentions that the pressure to deliver quickly can lead to dangerous working conditions for riders, highlighting the human cost of the current business practices [6][12] - The article warns that without technological innovation, the current subsidy-driven model could collapse under its own weight, threatening the entire ecosystem [6][12] Group 4: Recommendations for Improvement - The article suggests that platforms should adopt supply chain upgrades and innovative practices, such as the "central kitchen" model used by DoorDash, to reduce waste [13] - It advocates for a reform in profit distribution, proposing a more equitable model that avoids zero-sum competition among platforms, merchants, and riders [14] - The article calls for government intervention to regulate subsidies and promote technological advancements, which could lead to a healthier market environment [15] Group 5: Future Outlook - The article concludes that the true victims of the subsidy war are small businesses, which are caught in the crossfire of capital-driven competition [16] - It emphasizes the need for platforms that can sustainably generate profits for small merchants to succeed in the long run [16] - The future of the industry lies in innovation and a more inclusive ecosystem, rather than continued price wars [16]