Jing Ji Guan Cha Wang·2026-01-10 05:44Core Viewpoint - The Chinese government is investigating the competitive landscape of the food delivery platform service industry due to issues of unfair competition and price wars, which have led to excessive internal competition and disorderly market conditions [2] Group 1: Regulatory Actions and Industry Response - The State Administration for Market Regulation has previously held discussions with relevant companies and issued basic management requirements for food delivery platforms, focusing on food safety, rider rights, and competition rules [2] - Despite regulatory measures, competition among platforms remains fierce, with companies like Taobao, Meituan, and JD engaging in aggressive subsidy wars, prompting further regulatory intervention [2] - In response to the regulatory scrutiny, companies such as Meituan, Taobao, and JD have expressed their support and willingness to cooperate with the investigations [4] Group 2: Impact on Businesses and Market Dynamics - The ongoing subsidy wars have attracted consumers in the short term but have pressured small and medium-sized businesses, leading to reduced profit margins and potential compromises in food quality [2][3] - The phenomenon of "bad money driving out good" is emerging, where high-quality merchants are being forced out of the market due to the pressure of low prices [3] - Data analysis from over 40,000 restaurants indicates that while total order volume increased by 7% during the intensified competition period, the average revenue for merchants decreased by approximately 4% [3] Group 3: Financial Performance of Major Players - Financial data shows significant operational losses for major platforms, with JD's operating profit margin dropping to -0.2% in Q2 2025 from 3.6% in the same period of 2024, and Meituan's adjusted net profit falling by 89% year-on-year [4] - Alibaba's substantial subsidy initiatives have led to a 60% year-on-year increase in revenue for its instant retail business, but adjusted EBITA decreased by 78% [4] Group 4: Future Industry Outlook - Industry observers suggest that the food delivery market has entered a phase of stock competition, shifting the focus from user subsidies to building service ecosystems [5] - Regulatory intervention may accelerate industry consolidation, encouraging platforms to transition from "traffic competition" to "value creation," ultimately benefiting consumers, merchants, delivery personnel, and platforms [5]