Xin Lang Cai Jing·2025-08-28 05:52Core Insights - The article discusses the impact of the ongoing food delivery war on Meituan's financial performance and operational strategy, particularly focusing on the Q2 2025 earnings report [1][3]. Financial Performance - In Q2 2025, Meituan's core local commerce revenue grew by 7.7% year-on-year, reaching 65.3 billion yuan, a significant decline from the previous quarter's growth rate of 17.8%, indicating severe impacts from the competitive landscape [3][5]. - Market expenses surged by 51.8% year-on-year to 22.5 billion yuan, constituting 24.5% of total revenue, up from 18% in the previous quarter, reflecting the increased pressure from competitors [5][6]. - The delivery service revenue growth fell to 2.8%, while commission and online marketing services maintained double-digit growth, highlighting a shift in revenue dynamics [7][9]. Competitive Landscape - The competition has intensified, with rivals employing aggressive subsidy strategies, leading to a "zero-sum game" environment where market share is prioritized over profitability [3][5]. - Meituan's market share and user retention are under threat, necessitating increased marketing expenditures to maintain its competitive position [5][10]. Strategic Outlook - Despite short-term challenges, Meituan's flash purchase and travel businesses show potential for long-term growth, which could help mitigate the negative effects of the food delivery war [10][11]. - The management emphasizes the importance of maintaining a market share above 50% to ensure user and merchant loyalty, with Q3 2025 expected to be critical for defending this position [13][14]. Future Considerations - The upcoming months are crucial for Meituan as it navigates the competitive landscape, with expectations of a potential industry cooldown post-Q3 2025 [13][14].