Feng Huang Wang·2025-12-27 03:59Core Viewpoint - Meituan is facing intense competition from Alibaba and JD.com in the food delivery market, leading to significant financial losses and impacting its international expansion plans [1][2]. Group 1: Financial Impact - Meituan has incurred its largest quarterly loss since its IPO in 2018, with a loss of 16 billion RMB in Q3 due to heavy subsidies to compete with rivals [2][3]. - Analysts estimate that Meituan is losing approximately 1 RMB on average for each instant delivery order this year [2]. - If the subsidy war continues, Meituan's cash reserves are projected to drop to 74 billion RMB by next year, compared to 110 billion RMB in 2025 [4]. Group 2: Market Dynamics - Alibaba's resurgence has altered the competitive landscape, with the company investing 7 billion USD in subsidies and rapidly increasing its active user base in the food delivery sector [4]. - Meituan's market share in instant delivery is expected to decline from 73% in 2024 to 55% by 2027, while Alibaba's share is projected to rise from 21% to 40% in the same period [5]. Group 3: International Expansion Challenges - The fierce competition in the domestic market is hindering Meituan's international ambitions, as it must focus on defending its local market position [8]. - Meituan has made strides in international markets, surpassing competitors in Hong Kong and Saudi Arabia, but faces tougher challenges in Brazil due to stronger local players [8][9]. Group 4: Employee Morale and Company Culture - Employee morale at Meituan is reportedly low, with staff working long hours to support ongoing subsidy campaigns and manage the demands of both domestic and international operations [10]. - The company's stock has declined over 30% this year, contrasting sharply with the rebound of other Chinese internet stocks [10].