Qian Zhan Wang·2025-09-08 07:05Core Insights - Meituan's CEO Wang Xing revealed in an internal letter that the company served 770 million users and 14.5 million active merchants over the past year, with a peak of 150 million daily orders in instant retail [2] - The company's Q2 2025 earnings report showed a revenue of 91.8 billion yuan, with an adjusted net profit of 1.49 billion yuan, representing an 89% year-on-year decline due to irrational competition in the food delivery sector [3] - Meituan's marketing expenses increased by 51.5% year-on-year to 7.7 billion yuan in Q2, primarily to enhance user engagement amid fierce competition [3] Company Performance - Meituan's high-frequency rider average income reached 7,230 to 10,100 yuan in Q1 2025, a 12% increase compared to the end of 2024, with nationwide pension insurance subsidies for riders being introduced [2] - The food delivery market in China has rapidly expanded, becoming an essential part of daily life, with Meituan maintaining a leading position despite short-term performance fluctuations [3][6] Market Dynamics - The competitive landscape in the food delivery market is dominated by Meituan and Ele.me, with Meituan holding a market share of 68.2% as of mid-2020 [4] - The food delivery business is characterized by low margins, and increased competition has led to greater short-term volatility in performance [3][6] - Research indicates that resource allocation towards subsidy wars may hinder long-term industry transformation and efficiency, suggesting a need for investment in infrastructure to support restaurant operations [9]