JD(US:JD) Zhong Guo Jing Ying Bao·2025-07-20 14:24Core Viewpoint - The recent regulatory talks with major food delivery platforms have not significantly reduced promotional activities, as evidenced by continued high order volumes and sales for many merchants despite the discussions aimed at curbing excessive competition [1][9]. Group 1: Market Dynamics - On July 18, the State Administration for Market Regulation held talks with major platforms like Ele.me, Meituan, and JD.com, urging them to standardize promotional behaviors and engage in rational competition [1][7]. - Merchants reported that sales on July 19 were comparable to the previous week, indicating that the promotional activities were still in effect despite regulatory pressure [1][6]. - The platforms continued to issue significant discounts and coupons, with Meituan offering various food and beverage vouchers, and other platforms like Taobao and JD.com also providing substantial discounts [2][3]. Group 2: Competitive Landscape - The competition among food delivery platforms remains intense, with Ele.me gaining a larger market share at the expense of Meituan, while JD.com is also increasing its presence [10][11]. - Merchants noted that the revenue from Ele.me has surpassed that of Meituan, with Ele.me accounting for 49.7% of their delivery income, while Meituan's share has dropped to 36.9% [10]. - The ongoing promotional strategies reflect a "subsidy inertia," where platforms continue to offer discounts to retain users and maintain order volumes, despite regulatory calls to reduce aggressive pricing [9]. Group 3: Regulatory Impact - The regulatory body emphasized the need for platforms to avoid predatory pricing and adhere to laws governing e-commerce and fair competition [7][8]. - Legal experts highlighted that if platforms continue to offer products below cost to eliminate competition, it could be classified as unfair competition [8]. - The regulatory discussions have not yet led to a clear framework for enforcement, allowing platforms to navigate around the rules through combined discounts [9].