BABA(US:BABA) 佩妮Penny的世界·2025-07-23 10:57Core Viewpoint - The article discusses the intense competition in the food delivery market among major internet giants, highlighting the unprecedented scale of subsidies being deployed, which could reach nearly 1 trillion yuan, significantly surpassing previous subsidy wars in the industry [3][4]. Group 1: Industry Competition - The current subsidy war involves major players like Alibaba, Meituan, and JD.com, with total investments nearing 1 trillion yuan, marking a historic high in internet subsidies [3][4]. - The last comparable competition occurred in 2014 between Didi and Kuaidi, which involved around 2 billion yuan in subsidies over four months, illustrating the dramatic increase in financial stakes in the current market [3][4]. - Meituan's profit margins are low, with a net profit margin of only 3.3%, indicating that the food delivery market is not highly profitable despite its large scale [4][6]. Group 2: Strategic Insights - Meituan's leadership expresses a reluctance to engage in the subsidy war but feels compelled to do so due to competitive pressures, indicating a strategic defensive posture [6][7]. - The focus on international markets, particularly in the Middle East, is highlighted as a potential area for growth, with higher average order values and commission rates compared to the domestic market [6][7]. - The article suggests that Meituan's operational experience and strategic advantages may allow it to defend its market position with fewer resources compared to its competitors [6][7]. Group 3: Alibaba's Strategy - Alibaba aims to increase its monthly active users (MAU) on the Taobao app to 1 billion, leveraging food delivery services to enhance user engagement [8][9]. - The company plans to intensify its subsidy efforts until September, with daily expenditures potentially reaching 300 million yuan, to capture a larger market share [8][9]. - The integration of Ele.me into Alibaba's e-commerce ecosystem is seen as a strategic move to enhance its competitive position in the food delivery market [10]. Group 4: Market Dynamics - The article notes that the current subsidy strategies may lead to a long-term change in consumer behavior, with users becoming accustomed to lower prices and potentially reducing their order frequency once subsidies end [10]. - The financial burden of subsidies is shared between platforms and merchants, raising concerns about the sustainability of such pricing strategies in the long run [10]. - The high turnover rate of new restaurants entering the market highlights the challenges faced by small business owners in the food service industry, emphasizing the risks associated with entrepreneurship in this sector [10].