Xin Lang Cai Jing·2025-08-30 06:46Core Viewpoint - The fierce competition among Alibaba, JD, and Meituan in the food delivery market has led to significant financial losses for all three companies, with no clear winner emerging from the "battle" [2][5][19]. Financial Performance - JD's revenue for Q2 reached 356.7 billion RMB, a year-on-year increase of 22.4%, but its net profit plummeted by 50.8% to 6.2 billion RMB [6][10]. - Meituan reported Q2 revenue of 91.84 billion RMB, up 11.7% year-on-year, but its adjusted net profit fell by 89% to 1.49 billion RMB [8][10]. - Alibaba's Q2 revenue was 247.65 billion RMB, a mere 2% increase, with core operating profit declining by 3% [10][12]. Marketing Expenditure - JD's marketing expenses surged to 27 billion RMB in Q2, a 127.6% increase year-on-year [4][17]. - Meituan's marketing spending reached 22.5 billion RMB, up 51.8% from the previous year [4][18]. - Alibaba's marketing costs amounted to 53.18 billion RMB, a 62.6% increase year-on-year, leading to a total marketing expenditure exceeding 100 billion RMB for all three companies combined [5][18]. Cash Flow and Investment - JD's free cash flow dropped by 55% to approximately 22 billion RMB, with investment losses in the food delivery sector reaching 13 billion RMB [13][14]. - Meituan's core local business operating profit fell from 15.2 billion RMB to 3.7 billion RMB, a decline of 75.6% [10][14]. - Alibaba's free cash flow turned negative at 18.81 billion RMB, a significant drop from a positive cash flow of 17.37 billion RMB in the previous year [14]. Market Position and User Engagement - JD's food delivery service achieved over 25 million daily orders, covering 350 cities with more than 1.5 million merchants [20]. - Meituan's app reached over 500 million monthly active users, with peak daily orders for instant retail surpassing 15 million [20]. - Alibaba's instant retail revenue grew by 12% to 14.78 billion RMB, with significant increases in active users and order volumes [20]. Strategic Insights - The competition is characterized as a battle for high-frequency user engagement, with short-term growth driven by subsidies failing to create lasting competitive advantages [22]. - Industry leaders express concerns over unsustainable competition and the need for a more rational market approach moving forward [21][22].