JD(US:JD) Zhong Guo Xin Wen Wang·2025-08-10 06:59Group 1 - The external delivery platform subsidy war is cooling down following a meeting with China's State Administration for Market Regulation, which emphasized the need to avoid irrational promotions [1] - The "involution" competition issue remains a concern, as delivery riders and merchants face increased pressure despite short-term gains in order volume and income [1][2] - A medium-sized fast-food company's management reported a 12%-15% decline in dine-in customer flow due to delivery subsidies, with delivery orders increasing from 15% to 22% [1] Group 2 - Over-competition and "involution" can harm market efficiency and fairness, with subsidies failing to cultivate user habits or expand overall market size [2] - The subsidy war may accelerate the "Matthew effect," where financially strong platforms use extensive subsidies to squeeze out competitors, leading to increased market concentration [2] - The dual "involution" in platform economics involves both competition among platforms for user traffic and merchants being forced to participate in subsidies to gain private traffic [2] Group 3 - Recommendations for government regulation include flexible enforcement, such as reminders to platforms to standardize competitive behavior, and utilizing existing laws to regulate predatory pricing [3] - Platforms are advised to avoid short-sighted subsidy competition and instead pursue differentiated development paths through service quality improvement and technological innovation [3]