Sou Hu Cai Jing·2025-08-29 08:19Core Insights - The fierce competition in the food delivery sector has led to significant profit declines for both Meituan and JD.com, despite revenue growth for both companies [1][2][3] - Meituan's profit dropped by 89% to 1.49 billion yuan in Q2, while JD.com's profit was halved to 6.2 billion yuan [1][2] - The aggressive marketing strategies, including substantial discounts and promotions, have resulted in increased marketing expenses for both companies, with Meituan spending 22.5 billion yuan and JD.com spending 27 billion yuan in Q2 [1][3] Meituan Analysis - Meituan's revenue increased by 11.7%, but its core local business saw a profit decrease of 11.5 billion yuan compared to the previous year [1] - The company attributed its profit decline to "irrational competition," indicating that the competitive landscape forced it to increase spending on marketing [1] - Marketing expenses for Meituan doubled from 14.8 billion yuan to 22.5 billion yuan year-over-year [1] JD.com Analysis - JD.com reported a revenue increase of 22.4%, but its net profit fell from 12.6 billion yuan to 6.2 billion yuan [2] - The company gained over 1.5 million merchants and 150,000 delivery riders, but the cost of acquiring these resources contributed to the profit decline [2] - JD.com's marketing expenses surged by 127%, reaching 27 billion yuan in Q2, with daily spending on food delivery ads alone amounting to 150 million yuan [3] Industry Overview - The food delivery market is characterized by intense competition among major players, including Meituan, JD.com, and Alibaba's Taobao [3] - The ongoing "war" in the food delivery sector has led to a situation where companies are heavily investing in marketing and promotions, resulting in a "mutually destructive" financial environment [3] - Analysts predict that the aggressive spending will continue to impact profitability, with expectations of further profit declines for Alibaba as well [3]