Sou Hu Cai Jing·2025-07-20 09:53Core Viewpoint - The Chinese government is intensifying regulation of the food delivery industry, particularly targeting platforms like Meituan, Ele.me, and JD.com, to curb excessive subsidies and promote fair competition [1][21][28]. Group 1: Regulatory Actions - On July 18, the State Administration for Market Regulation held talks with major food delivery platforms, emphasizing compliance with laws such as the E-commerce Law and the Anti-Unfair Competition Law [1]. - This meeting followed a previous joint discussion on May 13, indicating a strong commitment from regulators to maintain order in the food delivery market [1]. Group 2: Ongoing Subsidy Practices - Despite regulatory warnings, platforms like Meituan and Ele.me continued aggressive subsidy campaigns, including "0 yuan purchase" and extreme discounts [2][12]. - On July 19, users reported significant discounts on these platforms, with some transactions resulting in consumers paying only a fraction of the actual cost, raising concerns about sustainability [12][18]. Group 3: Market Dynamics and Competition - The competition intensified after JD.com entered the food delivery market in March 2025, leading to a series of aggressive subsidy initiatives from Meituan and Ele.me [17]. - The ongoing price war has resulted in a "three losses" scenario: merchants sacrificing long-term viability, consumers receiving lower quality, and delivery personnel facing increased physical strain [22][26]. Group 4: Impact on Merchants and Delivery Personnel - A survey indicated that 83% of restaurants involved in subsidy activities experienced profit declines, with 45% reporting losses [23]. - Delivery personnel are under significant pressure, with increased workloads leading to health issues and safety risks, as evidenced by a 37% rise in traffic accidents among riders [26]. Group 5: Consumer Experience and Quality Concerns - Consumers are facing issues such as delayed deliveries and reduced service quality, with complaints rising by 47% in July [24][26]. - The low-price strategies have led to a perception of lower quality, as many consumers are unaware of the hidden costs associated with these discounts [28]. Group 6: Long-term Industry Implications - The current subsidy-driven model is creating systemic risks within the industry, with many businesses unable to sustain operations under the pressure of continuous discounts [25][27]. - The ongoing price wars are damaging the industry's innovation potential, as businesses focus on survival rather than quality improvement [27][30]. Group 7: Recommendations for Future Development - To address the challenges, a collaborative approach involving regulators, platforms, merchants, and consumers is necessary to create a sustainable ecosystem [28][30]. - Platforms should shift from aggressive discounting to enhancing service quality and operational efficiency, while merchants need to strengthen their bargaining power against unreasonable subsidy demands [29][30].